If the savings function is S = - 400 + (0.25)Y, then write down the expression for the Consumption Function based on the...

Question

Question

If the savings function is S = - 400 + (0.25)Y, then write down the expression for the Consumption Function based on the...

If the savings function is S = - 400 + (0.25)Y, then write down the expression for the Consumption Function based on the given information.

business economics

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1

C=Y-S

C=Consumption

Y=Income

S=Savings

C=Y-(-400+0.25Y)

C=400+.75Y

Answer: C=400+.75Y

Add a comment

Answer 2

Similar Homework Help Questions

Question two a) Given the following information: S = - 400 +0.25 Y → saving function...

Question two a) Given the following information: S = - 400 +0.25 Y → saving function I = 200 - 100 r + Investment function t = 0.2 → Tax rate G = 100 + Government expenditure X = 10 + Exports = 150 + 0.06 Y M → Im port function ii) b) Explain why autonomous saving is negative (2 marks) Express interest rate in terms of income (5 marks) Briefly explain the absolute income hypothesis ( 3 marks)
In the GDP function Y = C + S + I, where C=consumption (a+bY), S = savings and I = investment, ho...

In the GDP function Y = C + S + I, where C=consumption (a+bY), S = savings and I = investment, how are C+S+I impact when... 1. Y (real income) increases? 2. r (real interest rate) increases)?
1. Consider the following consumption function and the national income identity. C=0.01Y2 +0.8Y+200 Y=C+S Where, C...

1. Consider the following consumption function and the national income identity. C=0.01Y2 +0.8Y+200 Y=C+S Where, C is consumption and Y is national income, and S is saving a) Calculate the value of marginal propensity to consume (MPC) when Y=8 b) Find the expression for savings function and using that function calculate marginal propensity to save (MPS) when Y= 8.

The consumption function is given by the equation: C = 400 + 0.8(Yd) where C =...

The consumption function is given by the equation: C = 400 + 0.8(Yd) where C = consumption and Yd = disposable income. Currently, the level of disposable income is $5000. What is the current level of consumption? What is the current level of saving? What is the MPC? What is the MPS? Calculate the APC and the APS. 6. We are given the following information about the levels of disposable income and savings: Disposable Income Consumption Savings APC APS MPC...
1. Consider the following two period consumption savings problem. A consumer cares about consumption (c and...

1. Consider the following two period consumption savings problem. A consumer cares about consumption (c and future consumption c according to Assume that U(c) is given by for some constant y. In the present the consumer chooses how much to consume and how much to save out of her income y>0 This decision is made in the knowledge that in the future she will be retired, have no income, and thus future consumption will be entirely out of savings: c)a,...
If the consumption function is C = 100+ 0.90 Y and planned investment spending is 400,...

If the consumption function is C = 100+ 0.90 Y and planned investment spending is 400, what will be the equilibrium level of output? Y.-$ (Enter your response as an integer.)

On the planet Zorp, consumers consume mechanically based on the following consumption function ? = ?0...

On the planet Zorp, consumers consume mechanically based on the following consumption function ? = ?0 + 0.6? − 500?, where C is consumption, C0 is a constant, Y is consumers’ income (equivalent to GDP), and i is the interest rate written in decimal terms (i.e. a 5% interest rate gives i=0.05). Investors invest based on the following function: ? = ?0 − 1000?, where I is investment and I0 is a constant. There is no government in Zorp, so...
The consumption function is C = 400 + .7(Y – T) and the function for net...

The consumption function is C = 400 + .7(Y – T) and the function for net exports is Xn = 20 - .15 Y + .2 Yf + .3 E. I is exogenous, G is set by policy, and Yf = foreign GDP and the exchange rate E do not change. [15 points] What effect will an increase in G of $100 have on Y? What effect will a decrease in T of $100 have on Y? What would...
1. Suppose that the MPC is equal to 0.8 and autonomous consumption spending is 400. Then the consumption function is given by a. C = 400 - 0.8Yd b. C = -400 + 0.2Yd c. C = 320 x Yd d. C = 400 + 0.8Yd e. C = 400 + 0.2Yd 2. Suppose th

1.Suppose that the MPC is equal to 0.8 and autonomous consumption spending is 400. Then the consumption function is given bya.C = 400 - 0.8Ydb.C = -400 + 0.2Ydc.C = 320 x Ydd.C = 400 + 0.8Yde.C = 400 + 0.2Yd2.Suppose that the MPC is equal to 0.8 and autonomous consumption spending is 400. At what level of income is saving = 0?a.400b.500c.2000d.320e.12003.The saving functiona.. is an upward-sloping straight line with a vertical intercept of -C0 and a slope of...

If the savings function is S = - 400 + (0.25)Y, then write down the expression for the Consumption Function based on the...

Homework Answers

Add Answer to:
If the savings function is S = - 400 + (0.25)Y, then write down the expression for the Consumption Function based on the...

Post as a guest

Earn Coins

Question two a) Given the following information: S = - 400 +0.25 Y → saving function...

In the GDP function Y = C + S + I, where C=consumption (a+bY), S = savings and I = investment, ho...

1. Consider the following consumption function and the national income identity. C=0.01Y2 +0.8Y+200 Y=C+S Where, C...

The consumption function is given by the equation: C = 400 + 0.8(Yd) where C =...

1. Consider the following two period consumption savings problem. A consumer cares about consumption (c and...

If the consumption function is C = 100+ 0.90 Y and planned investment spending is 400,...

On the planet Zorp, consumers consume mechanically based on the following consumption function ? = ?0...

The consumption function is C = 400 + .7(Y – T) and the function for net...

1. Suppose that the MPC is equal to 0.8 and autonomous consumption spending is 400. Then the consumption function is given by a. C = 400 - 0.8Yd b. C = -400 + 0.2Yd c. C = 320 x Yd d. C = 400 + 0.8Yd e. C = 400 + 0.2Yd 2. Suppose th

If the savings function is S = - 400 + (0.25)Y, then write down the expression for the Consumption Function based on the...

Homework Answers

Add Answer to: If the savings function is S = - 400 + (0.25)Y, then write down the expression for the Consumption Function based on the...

Post as a guest

Earn Coins

Add Answer to:
If the savings function is S = - 400 + (0.25)Y, then write down the expression for the Consumption Function based on the...