1.1 Suppose that C= a + bY, where C= consumption, a= consumption at zero income, b=slope and Y= income.

1.1.1 Are C and Y positively or negatively related? (2)

1.1.2 Are the variables C and Y inversely or directly related? (2)

1.1.3 If graphed, would the curve for this equation slope upwards or slope downwards? (2)

1.1.4 What is the value of C if a=10, b=50 and Y=200? (3)