Mr. Navid conducted research on consumption and saving pattern in two countries 'Pakistan' and 'India; from the data of last 20 years, he constructed the following two functions:

Consumption Function for Pakistan = 450 million + 0.6Y

Consumption Function for India = 1500 Million + 0.4Y

From the given data:

1.1.Construct the Saving Functions for both the countries?

1.2.Interpret the values '450', '0.6' and '+ sign before 0.6Y' for Pakistan; what do they mean?1.3.What are the Autonomous Consumption values for both the countries; why do we call those

values 'Autonomous' Consumption?

1.4.If the income in Pakistan increases by 800 million; what will be the effect on Total

Consumption in the country?

1.5.If the Saving amount in India increases by 500 million; what will be the effect on Total

Consumption in the country?

1.6.In which one of these two countries, the change in income will bring higher change in the

consumption amount? Why?

1.7.If for Pakistan, the total consumption amount increases by 800 million, what changes should have been made in the national income?

1.8.If for India, the total consumption amount increases by 700 million, what changes should have been made in the national income?

1.9.Assume that the National Income in both the countries increases by 500 million; draw the

Consumption and Saving Curves for both the countries in separate graphs;use the consumption functions provided in the question.