Economics 19th Edition by Stanley Brue, Cambell McConnell, Campbell McConnell, Sean Masaki Flynn, Sean Flynn

Exercise 6

Suppose thatC = a + bY, where C=consumption. a = Consumption at zero income, b = slope, and Y = income.
a. Are C and Y positively related or are they negatiely related
b. If graphed, would the curve for this.equation slope upward orslope downward
c. Are the variables C and Y inversely related or directly related
d. What is the value of C if a = 10, b =.50, and Y = 200
e. What is the value of Y if C = 100, a =10, and b =.25