In macroeconomic theory, total consumption expenditure on goods and services, C, is assumed to be a linear function of national income, L. The table gives the values of C and I for 2004 and 2009 in country A (in billions of dollars). a. Find the formula for C as a function of I. b. The slope of the linear function is called the marginal propensity to consume. What is the marginal propensity to consume for country A from 2004-2009? Year 2004 2009 Total consumption (C) $8,289 $10,086 National income (I) $9,938 $12,027 a. Find the formula for C as a function of I. (Round to four decimal places as needed. Use integers or decimals for any numbers in the expression.)
In macroeconomic theory, total consumption expenditure on goods and services, C, is assumed to be a linear function of national income, L. The table gives the values of C and I for 2004 and 2009 in country A (in billions of dollars). a. Find the formula for C as a function of I. b. The slope of the linear function is called the marginal propensity to consume. What is the marginal propensity to consume for country A from 2004-2009? Year 2004 2009 Total consumption (C) $8,289 $10,086 National income (I) $9,938 $12,027 a. Find the formula for C as a function of I. (Round to four decimal places as needed. Use integers or decimals for any numbers in the expression.)
Algebra & Trigonometry with Analytic Geometry
13th Edition
ISBN:9781133382119
Author:Swokowski
Publisher:Swokowski
Chapter3: Functions And Graphs
Section3.3: Lines
Problem 60E
Related questions
Question
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 3 images
Recommended textbooks for you
Algebra & Trigonometry with Analytic Geometry
Algebra
ISBN:
9781133382119
Author:
Swokowski
Publisher:
Cengage
Algebra for College Students
Algebra
ISBN:
9781285195780
Author:
Jerome E. Kaufmann, Karen L. Schwitters
Publisher:
Cengage Learning
Glencoe Algebra 1, Student Edition, 9780079039897…
Algebra
ISBN:
9780079039897
Author:
Carter
Publisher:
McGraw Hill
Algebra & Trigonometry with Analytic Geometry
Algebra
ISBN:
9781133382119
Author:
Swokowski
Publisher:
Cengage
Algebra for College Students
Algebra
ISBN:
9781285195780
Author:
Jerome E. Kaufmann, Karen L. Schwitters
Publisher:
Cengage Learning
Glencoe Algebra 1, Student Edition, 9780079039897…
Algebra
ISBN:
9780079039897
Author:
Carter
Publisher:
McGraw Hill
College Algebra
Algebra
ISBN:
9781305115545
Author:
James Stewart, Lothar Redlin, Saleem Watson
Publisher:
Cengage Learning
Holt Mcdougal Larson Pre-algebra: Student Edition…
Algebra
ISBN:
9780547587776
Author:
HOLT MCDOUGAL
Publisher:
HOLT MCDOUGAL
Algebra and Trigonometry (MindTap Course List)
Algebra
ISBN:
9781305071742
Author:
James Stewart, Lothar Redlin, Saleem Watson
Publisher:
Cengage Learning