answer, you will simply enter the number; so if your answer is 2, enter 2 with no decimals. Do not enter any extra spaces, do not enter commas or $ or % symbols.Suppose the consumption function is: C = a1Yd+ a2WRE/S + a3CC Where all the a’s (the sensitivity parameters) are greater than zero. Initial conditions: Let a1= 0.60, a2= 0.04, a3= .5, WRE/S = 18,000: CC = 90 Solve for C in terms of Yd.Select the correct equation below.
Table for Individual Question Feedback2. Use the equation you found in #1 and let Yd= 2000. C is equal to .Table for Individual Question FeedbackPoints Earned: 3.0/3.0
3. Suppose that the stock market rallies so that WRE/S increases to 22,000. Additionally, consumer confidence (CC) rises to 100. Re-solve for C in terms of Yd. Select the correct equation below.