Chapter 9, Problem 15E

To determine

(a)

To write:

Consumption function

C= 200+0.8Y

The amount of autonomous consumption.

To determine

(b)

To write:

Consumption function

C= 200+0.8Y

The value of marginal propensity to consume.

To determine

(c)

To write:

Consumption function

C= 200+0.8Y

The value of consumption when GDP equals $1000.