Explanation Given information: The national consumption is $ 6 billion The disposable income is $ 0 and The marginal propensity to save is d S d y = 0.2 − 1 3 y + 7 . Formula used: Marginal propensity to consume: Marginal propensity to consume d C d y is defined as one minus Marginal propensity to save d S d y . d C d y = 1 − d S d y National consumption function: The national consumption function C is defined as the integration of the marginal propensity f ′ ( y ) . C = ∫ f ′ ( y ) d y = f ( y ) + K Integral formula, ∫ x n d x = x n + 1 n + 1 + K Calculation: It is provided that the marginal propensity to save is: d S d y = 0.2 − 1 3 y + 7 . Consider the formula: d C d y = 1 − d S d y Substitute 0.2 − 1 3 y + 7 for d S d y and evaluate, d C d y = 1 − ( 0.2 − 1 3 y + 7 ) = 0.8 + 1 3 y + 7 Thus, f ′ ( y ) = 0.8 + 1 3 y + 7 Consider the formula: C = ∫ f ′ ( y ) d y = f ( y ) + K Substitute 0

Mathematical Applications for the Management, Life, and Social Sciences

12th Edition

ISBN: 9781337625340

Author: Ronald J. Harshbarger, James J. Reynolds

Publisher: Cengage Learning

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Chapter 12.4, Problem 27E

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To calculate: The national consumption function where national consumption is $6 billion and the disposable income is $0 and if the marginal propensity to save is dSdy=0.2−13y+7.

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Chapter 12.4, Problem 26E

Chapter 12.4, Problem 28E

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Chapter 12 Solutions

Mathematical Applications for the Management, Life, and Social Sciences

Ch. 12.1 - 1. True or false: (a) (b) Ch. 12.1 - Prob. 2CP Ch. 12.1 - 1. If what is Ch. 12.1 - Prob. 2E Ch. 12.1 - Prob. 3E Ch. 12.1 - Prob. 4E Ch. 12.1 - Prob. 5E Ch. 12.1 - Evaluate the integrals in Problems 5-28. Check...Ch. 12.1 - Prob. 7E Ch. 12.1 - Evaluate the integrals in Problems 5-28. Check...

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The national consumption function where national consumption is $6 billion and the disposable income is $0 and if the marginal propensity to save is d S d y = 0.2 − 1 3 y + 7 .

Solution Summary: The author explains how to calculate the national consumption function, if the marginal propensity to save is dS

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To calculate: The national consumption function where national consumption is $6 billion and the disposable income is $0 and if the marginal propensity to save is dSdy=0.2−13y+7.

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Chapter 12 Solutions