Based on the information in problem 13, if / is currently 10 what is C?
If / increases by one unit to 11, what is C? What percentage increase is that?

Problem 13

A semi-log (log-lin) consumption function states InC = 2 + 0.058I in which lnC is the log of consumption for a small national economy measured in billions of monetary units and / is the income (measured as GDP) in trillions of units. If / increases by one unit::

A. What happens to C?
B. Calculate C.