Suppose that the marginal propensity to consume is dC In(y + 1) (in trillions of dollars) dy y+1 and that consumption is $6.08 trillion when disposable income is $0. Find the national consumption function. C(y) = -0.02 +

Suppose that the marginal propensity to consume is dC In(y + 1) (in trillions of dollars) dy y+1 and that consumption is $6.08 trillion when disposable income is $0. Find the national consumption function. C(y) = -0.02 +

MACROECONOMICS FOR TODAY

10th Edition

ISBN:9781337613057

Author:Tucker

Publisher:Tucker

Chapter8: The Keynesian Model

Section: Chapter Questions

Problem 6SQ

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Question

Suppose that the marginal propensity to consume is
d
In(y + 1)
-0.02 +
y+1
and that consumption is $6.08 trillion when disposable income is $0. Find the national consumption function.
c(y) =
(in trillions of dollars)

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