Suppose that the marginal propensity to save is dS = 0.93 dy In(y + 1) y + 1 (in billions of dollars) and that consumption is $6.07 billion when disposable income is $0. Find the national consumption function. In y– 11 2 + 6.02y10 9. C(y) = 0.93у — 2
Suppose that the marginal propensity to save is dS = 0.93 dy In(y + 1) y + 1 (in billions of dollars) and that consumption is $6.07 billion when disposable income is $0. Find the national consumption function. In y– 11 2 + 6.02y10 9. C(y) = 0.93у — 2
Chapter8: The Keynesian Model
Section: Chapter Questions
Problem 13SQ
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Question
![Suppose that the marginal propensity to save is
dS
In(y + 1)
= 0.93 –
dy
(in billions of dollars)
y + 1
and that consumption is $6.07 billion when disposable income is $0. Find the national consumption function.
In y– 11
2
+ 6.02y10
9
C(y)
0.93y -](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc75b9532-eb3d-4da4-9ad2-407b3667e9e5%2Fbf4d8654-6547-4207-a448-c5794b77ea9e%2Fqpd542_processed.png&w=3840&q=75)
Transcribed Image Text:Suppose that the marginal propensity to save is
dS
In(y + 1)
= 0.93 –
dy
(in billions of dollars)
y + 1
and that consumption is $6.07 billion when disposable income is $0. Find the national consumption function.
In y– 11
2
+ 6.02y10
9
C(y)
0.93y -
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