Suppose that c a by where c consumption a consumption

Assignment Help Macroeconomics

Suppose that C = a + bY , where C =consumption, a = consumption at zero income, b = slope, and Y = income.

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?

d. What is the value of C if a = 10, b = .50, and Y = 200?

e. What is the value of Y if C = 100, a = 10, and b = .25?

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