Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The savings function in an economy is as follows: Consumption Function S = -200 +0.4YD 800- Using this information, we can write the consumption function

image text in transcribed
image text in transcribed
The savings function in an economy is as follows: Consumption Function S = -200 +0.4YD 800- Using this information, we can write the consumption function in this economy as follows: (Round your response for the intercept 45 line term to the nearest whole number and round your response for the slope term to two decimal places.) C = 200 + 0.6 YD 600- 1. Use the line drawing tool to draw the consumption function. Label this line 'C'. Make sure that the line extends from disposable income of 0 to at least 500. The consumption function should intersect the 45 degree line. Desired Consumption Expenditure 400- 2. Use the point drawing tool to plot the level of disposable income for which the savings will be equal to zero. Label this point Carefully follow the instructions above, and only draw the required objects. 200- 200 400 600 800 Disposable Income

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Statistical Techniques In Business And Economics

Authors: Douglas Lind, William Marchal, Samuel Wathen

14th Edition

0077309421, 978-0077309428

More Books

Students also viewed these Economics questions

Question

3. Im trying to point out what we need to do to make this happen

Answered: 1 week ago