macrdeconomic theory, total consumption expenditure on goods and services, C, is assumed to be a linear function of national income, I. 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) $8,292 $10,082 National income (1) $9,932 $12,027 ..... a. Find the formula for C as a function of I. C= (Round to four decimal places as needed. Use integers or decimals for any numbers in the expression.) b. The marginal propensity to consume is (Round to four decimal places as needed.)
macrdeconomic theory, total consumption expenditure on goods and services, C, is assumed to be a linear function of national income, I. 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) $8,292 $10,082 National income (1) $9,932 $12,027 ..... a. Find the formula for C as a function of I. C= (Round to four decimal places as needed. Use integers or decimals for any numbers in the expression.) b. The marginal propensity to consume is (Round to four decimal places as needed.)
Algebra & Trigonometry with Analytic Geometry
13th Edition
ISBN:9781133382119
Author:Swokowski
Publisher:Swokowski
Chapter3: Functions And Graphs
Section3.3: Lines
Problem 60E
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Transcribed Image Text:In macroeconomic theory, total
consumption expenditure on goods and
services, C, is assumed to be a linear
function of national income, I. 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 2004-20097
Year
2004
2009
Total consumption (C) $8,292 S10,082
National income (I)
$9,932 $12,027
a. Find the formula for C as a function of I.
C =
(Round to four decimal places as needed. Use integers or decimals for any numbers in the expression.)
b. The marginal propensity to consume is
(Round to four decimal places as needed.)
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