Suppose the marginal propensity to consume is given by: DC/DY=.03- .2/Square root of (y), (in billions of dollars)  and national consumption is $8 billion when disposable income is $0. Find the national consumption function.

College Algebra
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ISBN:9781938168383
Author:Jay Abramson
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Chapter6: Exponential And Logarithmic Functions
Section6.7: Exponential And Logarithmic Models
Problem 16TI: Recent data suggests that, as of 2013, the rate of growth predicted by Moore’s Law no longer holds....
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Suppose the marginal propensity to consume is given by: DC/DY=.03- .2/Square root of (y), (in billions of dollars)

 and national consumption is $8 billion when disposable income is $0. Find the national consumption function.

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Step 1: Given.

We have given dCdy= 0.03 - 0.2y.

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