slope of the consumption function

Related BrainMass Solutions

• consumption function

  
  consumption function: C = MPC*Yd + constant
  so MPC is the slope of consumption function
  saving function S = MPS*Yd + constant
  so MPS is the slope of saving function
  How is the MPS related to the saving function

• Keynesian Consumption Function

  • The slope of the consumption function may be written as mpc. .

• utility functions and budget constraints

  Slope of the budget constraint = a / w Thus to find L*, slope of the utility function = Slope of the budget constraint.

• Value of the multiplier & sum of saving

  its equivalent expression: 1 / (1 - MPC)= 1/(1-.8)=1/.2=5 Explain why the multiplier is related to the slope of the consumption function.

• Cost and Revenue Calculations Using Calculus

  What is the average cost in that case? 3. Use the definition of the derivative to find the derivative of the function Y=x^3 +5 4. Find the slope of the Tangent line to the given curve at the given value of x.

• Analysis of IS/LM curves

  is a function of the interest rate (i)] As you can see in the function above, the aggregate expenditure as a function of Y (as shown in the Keynesian cross graph) is a line, whose slope is the MPC.

• monthly water bill and the amount of water used

  202349 Monthly Cost of Water Consumption Suppose that a household's monthly water bill (in dollars) is a linear function of the amount of water the household uses (in hundreds of cubic feet, HCF).

• Finance: Tennessee gasoline prices, increase in disposal income, decrease in travel

  Because the slope of a line constant everywhere along the line, the MPC for any linear consumption function will be constant at all levels of income. The slope of the saving function equals the MPS.

• maximize utility subject to the budget constraint

  The consumer maximizes her utility function subject to the constraint that the present value of consumption must equal the present value of income— that is, In general, if an individual has zero time preference and if the utility function is