Suppose that the marginal propensity to save is ds = 0.95 - dy In(y + 1) (in billions of dollars) y + 1 and that consumption is $6.03 billion when disposable income is $0. Find the national consumption function. C(y) = 6.05

Calculus For The Life Sciences
2nd Edition
ISBN:9780321964038
Author:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Publisher:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Chapter7: Integration
Section7.EA: Extended Application Estimating Depletion Dates For Minerals
Problem 4EA
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Suppose that the marginal propensity to save is
 
dS
dy
 = 0.95 − 
ln(y + 1)
y + 1
 
     (in billions of dollars)
and that consumption is $6.03 billion when disposable income is $0. Find the national consumption function.
Suppose that the marginal propensity to save is
ds
= 0.95
dy
In(y + 1)
(in billions of dollars)
y + 1
and that consumption is $6.03 billion when disposable income is $0. Find the national consumption function.
C(y) =
6.05
Transcribed Image Text:Suppose that the marginal propensity to save is ds = 0.95 dy In(y + 1) (in billions of dollars) y + 1 and that consumption is $6.03 billion when disposable income is $0. Find the national consumption function. C(y) = 6.05
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