Suppose that the marginal propensity to save is dS dy = 0.93 − ln(y + 1) y + 1 (in billions of dollars) and that consumption is $6.05 billion when disposable income is $0. Find the national consumption function. C(y) =

Suppose that the marginal propensity to save is dS dy = 0.93 − ln(y + 1) y + 1 (in billions of dollars) and that consumption is $6.05 billion when disposable income is $0. Find the national consumption function. C(y) =

Economics For Today

10th Edition

ISBN:9781337613040

Author:Tucker

Publisher:Tucker

Chapter18: The Keynesian Model

Section: Chapter Questions

Problem 13SQ

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Question

Suppose that the marginal propensity to save is

= 0.93 −

ln(y + 1)

y + 1

(in billions of dollars)

and that consumption is $6.05 billion when disposable income is $0. Find the national consumption function.

C(y) =

Suppose that the marginal propensity to save is
dS
= 0.93 -
dy
In(y + 1)
(in billions of dollars)
y + 1
and that consumption is $6.05 billion when disposable income is $0. Find the
national consumption function.
C(y) =

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