Consumption Function | Importance, Formulas & Examples
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(a) autonomous consumption;(b) marginal propensity to consume.Transpose this formula to express Y in terms of C and hence find the value of Y whenC = 110.4. Write down expressions for the savings function given that the consumption function is(a) C = 0.9Y 72(b) C = 0.8Y 1005. For a closed economy with no government intervention, the consumption function isC = 0.6Y 30and planned investment isI = 100Calculate the equilibrium level of(a) national income;(b) consumption;(c) savings.6. A consum
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