For a country's economy as a whole, consumption is a linear function of its national income as follows: At any level of income, consumption equals 4 billion plus 80% of national income. Calculate : a. The consumption function and the saving function. b. The value of consumption and aggregate savings if the income is 60 billion. Solve subparts a and b thank u

For a country's economy as a whole, consumption is a linear function of its national income as follows: At any level of income, consumption equals 4 billion plus 80% of national income. Calculate : a. The consumption function and the saving function. b. The value of consumption and aggregate savings if the income is 60 billion. Solve subparts a and b thank u

ECON MACRO

5th Edition

ISBN:9781337000529

Author:William A. McEachern

Publisher:William A. McEachern

Chapter9: Aggregate Demand

Section: Chapter Questions

Problem 1.3P

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