TUTORIAL : CONSUMPTION AND SAVING Given the consumption function is C = 100 + 0.70Yd , find
Fantastic news! We've Found the answer you've been seeking!
Question:
TUTORIAL : CONSUMPTION AND SAVING
- Given the consumption function is C = 100 + 0.70Yd , find the saving function . Draw and explain about curve for consumption function and saving function. Assume breakeven point at RM150 (10M)
- Given the consumption function is S = -200 + 0.65Yd , find the saving function . Draw and explain about curve for consumption function and saving function. Assume breakeven point at RM250 (10M)
- Table below show the disposable income, consumption (C ) and savings(S)
Disposable income | Consumption (C ) | Savings (S) |
0 | 80 | -80 |
100 | 140 | -40 |
200 | 200 | 0 |
300 | 260 | 40 |
400 | 320 | 80 |
500 | 380 | 120 |
Based on table above :
- Calculate APC, MPC, APS and MPS
- Create consumption function and saving function
- If breakeven point is RM 100, draw the consumption function and saving function in graph paper
- Explain what happen for consumption and saving based on curve at question 3(C )
Related Book For
Financial Accounting An Introduction to Concepts, Methods and Uses
ISBN: 978-1133591023
14th edition
Authors: Roman L. Weil, Katherine Schipper, Jennifer Francis
Posted Date: