6. Suppose that C 5 a 1 bY , where C 5 consumption, a 5 consumption at...
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6. Suppose that C 5 a 1 bY , where C 5 consumption, a 5 consumption at zero income, b 5 slope, and Y 5 income. LO7
a. Are C and Y positively related or are they negatively related?
b. If graphed, would the curve for this equation slope upward or slope downward?
c. Are the variables C and Y inversely related or directly related?
d. What is the value of C if a 5 10, b 5 .50, and Y 5 200?
e. What is the value of Y if C 5 100, a 5 10, and b 5 .25?
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Related Book For
Economics Principles Problems And Policies
ISBN: 9780073511443
19th Edition
Authors: Campbell Mcconnell ,Stanley Brue ,Sean Flynn
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