If the consumption function is given as C= 20 + 0.8Yd, complete the
Following table:
Disposable
Income (Yd)
200 500
Consumption
(C)
300 700
Savings (S) 100
The C=20+0.8YdC=20+0.8YdC=20+0.8Yd
given disposable income(Yd):at 200C=20+(0.8×200)=180at 500C=20+(0.8×500)=420given\ disposable \ income(Yd) :\\ at \ 200\\ C=20+(0.8\times 200)=180\\ at\ 500\\ C=20+(0.8\times500)=420\\given disposable income(Yd):at 200C=20+(0.8×200)=180at 500C=20+(0.8×500)=420
Given Consumption(C):at 300300=20+0.8Yd=350700=20+0.8Yd=850Given\ Consumption (C):\\ at \ 300\\ 300=20+0.8Yd=350\\ 700=20+0.8Yd=850\\Given Consumption(C):at 300300=20+0.8Yd=350700=20+0.8Yd=850
Savings(S)S=Y−C100=Y−20+0.8Yd120=Y+0.8Yd120=1.8YdY=[1201.8]Y=66.66Savings(S)\\ S=Y-C\\ 100=Y-20+0.8Yd\\ 120=Y+0.8Yd\\ 120=1.8Yd\\ Y=[\frac{120}{1.8}]\\ Y=66.66Savings(S)S=Y−C100=Y−20+0.8Yd120=Y+0.8Yd120=1.8YdY=[1.8120]Y=66.66
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