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Answer to Question #87745 in Macroeconomics for nhlanhla Faith Nkomo
Question #87745
Consider the consumption function below and answer the questions that follow: C= 40 + 0.25YD
1.1. Sketch the above function on a graph (5) 1.2. What is the value of autonomous expenditure? (2) 1.3. What is the gradient of the consumption function? (2) 1.4. What is the value of total consumption if disposable income is R2500?
1.1. Sketch the above function on a graph (5) 1.2. What is the value of autonomous expenditure? (2) 1.3. What is the gradient of the consumption function? (2) 1.4. What is the value of total consumption if disposable income is R2500?
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