Chapter 12.4, Problem 29E

(a)

To determine

To calculate: The U.S national consumption function(in billion dollar) for $2012$, If the marginal propensity to consume is can be modeled by $\frac{dC}{dy}=0.0169y+0.617$ where, $y$ represents the disposable income (in billion dollar).

(b)

To determine

To calculate: The U.S national consumption function(in billion dollar) for $2012$, If the marginal propensity to consume is can be modeled by $\frac{dC}{dy}=0.0169y+0.617$ where, $y$ represents the disposable income (in billion dollar).

(c)

To determine

Comparison between the equations $\overline{C}\left(y\right)=0.0845y^2+0.617y+2.75$ and $\overline{C}\left(y\right)=0.0845y^2+0.617y+2.43$ and, the name of the function which would be good model for these data.