Question: 6. uppose that C = a + bY, where C = consumption, a = con- sumption at zero income, b = slope, and Y =

6. uppose that C = a + bY, where C = consumption, a = con- sumption at zero income, b = slope, and Y = income. L01.8 a. Are C and Y positively related or are they negatively related? b. If graphed, would the curve for this equation slope upward or slope downward? c. Are the variables C and Y inversely related or directly related? (1. What is the value ofCifa =10, b = 0.50, and Y: 200? e. What is the value of YifC= 100, a =10, and b = 0.25? 7. The accompanying graph shows curve XX " and tangents at points A, B, and C. Calculate the slope of the curve at these three points. L01.8 0 2 4 6 810121416182022242628 8. In the accompanying graph, is the slope of curve AA' positive or negative? Does the slope increase or decrease as we move along the curve from A to A'? Answer the same two questions for curve 33'. L01.8
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
