Suppose the Consumption function for a particular economic system is: C = 150,000 + .95Y 1. What is the Marginal Propensity to Consume for this economy? If aggregate income increases by $27 Billion, what will happen to aggregate consumption spending? 2. At what level of Y is saving equal to zero?
Suppose the Consumption function for a particular economic system is: C = 150,000 + .95Y 1. What is the Marginal Propensity to Consume for this economy? If aggregate income increases by $27 Billion, what will happen to aggregate consumption spending? 2. At what level of Y is saving equal to zero?
Chapter9: Aggregate Expenditures
Section: Chapter Questions
Problem 15E
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