Assume aggregate consumer spending equals $1,500 when aggregate disposable income is zero, and when disposable income increases from $0 to $1,000, consumer spending increases by $650. What is the equation for the aggregate consumption function? C = 1,500YD + 650 C = 0.65YD + 1,500 C = 650YD + 1,500 C = 0.75YD + 1,000

Assume aggregate consumer spending equals $1,500 when aggregate disposable income is zero, and when disposable income increases from $0 to $1,000, consumer spending increases by $650. What is the equation for the aggregate consumption function? C = 1,500YD + 650 C = 0.65YD + 1,500 C = 650YD + 1,500 C = 0.75YD + 1,000

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter2: Mathematics For Microeconomics

Section: Chapter Questions

Problem 2.3P

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