Given: C = $2 billion + 0.75Y F. Starting with the equation above, what happens to...

Question

Question

Given: C = $2 billion + 0.75Y

F. Starting with the equation above, what happens to the graph of the consumption function if the equation changes to: C = $3 billion + 0.75Y?

G. Starting with the equation above, what happens to the graph of the consumption function if the equation changes to: C = $2 billion + 0.9Y?

H. Starting with the equation above, what happens to the graph of the consumption function if the equation changes to: C = $4 billion + 0.75Y?

Answer 1

Answer #1

c = $2 bivion +0.15 y slope - AC -0.75 ; vertical Intercept : C = $2 billion CY=0) to slope remains same and vertical intarey

Answer 2

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