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Write the equation for the consumption function: (Value - 2 marks each - Total value 6 marks) 5. Refer to Table 6.12 on page 279

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Write the equation for the consumption function: (Value - 2 marks each - Total value 6 marks) 5. Refer to Table 6.12 on page 279 of your text. Use the data below to complete the questions. It represents the simple economy of Cobal. The country has no government or taxes and no international trade. Its investment is autonomous and its MPC is constant. Table 6.12 on page 279 - 10th edition (page 248 -9th edition) C S AE 0 125 75 400 325 800 275 1200 1600 2000 875 a) What is the value of expenditures equilibrium? Equilibrium: b) What is the value of the multiplier (to one decimal place)? Multiplier: (Value - 3 marks each - Total value 6 marks)

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