Question: ADVANCED ANALYSIS Suppose that the linear equation for consumption in a hypothetical economy is C 40 .8Y. Also suppose that income (Y )

ADVANCED ANALYSIS Suppose that the linear equation for consumption in a hypothetical economy is C  40  .8Y.

Also suppose that income (Y ) is $400. Determine

(a) the marginal propensity to consume,

(b) the marginal propensity to save,

(c) the level of consumption, (d ) the average propensity to consume,

(e) the level of saving, and ( f ) the average propensity to save.

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