Question: If the consumption function is given by C = 0.7 Y + 40 state the values of (a) autonomous consumption; (b) marginal propensity to consume.

If the consumption function is given by C = 0.7 Y + 40 state the values of

(a) autonomous consumption;
(b) marginal propensity to consume.
Transpose this formula to express Y in terms of C and hence find the value of Y when C = 110.

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