Consumption Function Suppose that a country’s consumption function is given by where C and I are expressed in billions of dollars. (a) Find the marginal propensity to save when income is $25...


Consumption Function Suppose that a country’s consumption function is given by





where C and I are expressed in billions of dollars.


(a) Find the marginal propensity to save when income is $25 billion.


(b) Determine the relative rate of change of C with respect to I when income is $25 billion.





Jan 02, 2022
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