Question
Given the aggregate consumption function C= 0.9Y+ 100(where C is aggregate consumption and Y is aggregate income)
(a) Find the marginal propensity to consume (MPC) and average propensity to consume (APC) (b) Find the elasticity of consumption with respect to income, and show that it equals MPC/APC
Answer :
Word Count : 236
### Given the aggregate consumption function: \[ C = 0.9Y + 100 \] where: - \( C \) is aggregate consumption - \( Y \) is aggregate income ### (a) Find the Marginal Propensity to Consume (MPC) and Average Propensity to Consume (APC) #### Marginal Propensity to _________ ___ ________ _______ _________ _________ __________.
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### Given the aggregate consumption function: \[ C = 0.9Y + 100 \] where: - \( C \) is aggregate consumption - \( Y \) is aggregate income ### (a) Find the Marginal Propensity to Consume (MPC) and Average Propensity to Consume (APC) #### Marginal Propensity to _________ ___ ________ _______ _________ _________ __________.
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