Given C = $50 billion + 0.75Yd. If income increases by $40 billion, what do you...
Given C = $50 billion + 0.75Yd. If income increases by $40 billion, what do you expect to happen to consumer spending?
Homework Answers
C= $50 billion + 0.75Yd
If income increase by $40 billion
C= $50 billion + 0.75(Yd + $40 billion)
C= $50 billion + 0.75 Yd + $30 billion
After the income increases by $40 billion, consumer spending will rise by $30 billion.
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Given C = $50 billion + 0.75Yd. If income increases by $40
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