Question: The consumption function is expressed as C=c0+ c1Y. A. Define c0and c1and give one practical example of each. B. Derive the savings function (c1= 0.5)

The consumption function is expressed as C=c0+ c1Y.

A. Define c0and c1and give one practical example of each.

B. Derive the savings function (c1= 0.5)

C. Calculate the effect of a 2 billion increase in private investment on aggregate demand.(

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