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
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ISBN:9781133382119
Author:Swokowski
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Chapter3: Functions And Graphs
Section3.3: Lines
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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.)
Transcribed Image Text: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.)
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