In macroeconomic theory, total
consumption expenditure on goods
and services, C, is assumed to be a linear
function of national income, 1. The table.
gives the values of C and I for 2004 and
2009 in country A (in billions of dollars).
a. Find the formula for C as a function of 1.
b. The slope of the linear function is called the marghal propensity to consume. What is the marginal propensity to consume for country A from 2004-2009?
Year
2004 2009
Total consumption (C) $8,286 $10,094
National income (1) $9,937 $12,028
a. Find the formula for C as a function of 1.
-0
(Round to four decimal places as needed. Use integers or decimals for any numbers in the expression.)
C=