Refer to the information provided in Figure 23.4 below to answer ...

[MirandaLo]

Thank you!

[dudman123]

Always glad to help...

[drink]

Question 1

Refer to the information provided in Figure 23.4 below to answer the question(s) that follow.








Refer to Figure 23.4. Suppose the consumption function for 
C
₁ is [
C
₁ = 20 + 0.75
Y]. The consumption function that best fits 
C
₂ is

◦ C
₂ = 10 + 0.5
Y.
◦ C
₂ = 20 + 0.25
Y.
◦ C
₂ = 10 + 0.4
Y.
◦ C
₂ = 40 + 0.75
Y.

Question 2

Refer to the information provided in Figure 23.4 below to answer the question(s) that follow.








Refer to Figure 23.4. Suppose the consumption function for 
C
₁ is [
C
₁ = 15 + 0.4
Y]. The consumption function that best fits 
C
₃ is

◦ C
₃ = 20 + 0.8
Y.
◦ C
₃ = 30 + 0.25
Y.
◦ C
₃ = 15 + 0.75
Y.
◦ C
₃ = 20 + 0.4
Y.

[Cheesycrackers]

Answer 1

C
₂ = 40 + 0.75
Y.

Answer 2

C
₃ = 15 + 0.75
Y.

[Jkov05]

Question 1

Refer to the information provided in Figure 23.4 below to answer the question(s) that follow.








Refer to Figure 23.4. If income is 
Y
₁, aggregate consumption is the smallest when the aggregate consumption function is

◦ C
₃.
◦ C
₂.
◦ C
₁.
◦ cannot be determined from the figure.

Question 2

Refer to the information provided in Figure 23.4 below to answer the question(s) that follow.








Refer to Figure 23.4. The society's consumption is equal along 
C
₂ and 
C
₃ if

◦ income is 
Y
₁.
◦ income is 
Y
₂.
◦ saving is positive.
◦ saving is negative.

[javimendoza7]

Answer 1

C
₁.

Answer 2

income is 
Y
₂.

[Jkov05]

Excellent

[javimendoza7]

Great! Please up vote