Question
iven the consumption function C = R500 billion + 0.80Y, an increase in disposable income from R6,000 billion to R7,000 billion will cause consumption to increase by:
R800 billion.
R1,000 billion.
R1,300 billion.
R1,500 billion.
R1,800 billion.
R800 billion.
R1,000 billion.
R1,300 billion.
R1,500 billion.
R1,800 billion.
Answers
GPT-5 mini
R800 billion.
Calculation: ΔY = 1,000; ΔC = 0.80 × 1,000 = 800. (Or C1 = 500 + 0.8×6,000 = 5,300; C2 = 500 + 0.8×7,000 = 6,100; ΔC = 800.)
Calculation: ΔY = 1,000; ΔC = 0.80 × 1,000 = 800. (Or C1 = 500 + 0.8×6,000 = 5,300; C2 = 500 + 0.8×7,000 = 6,100; ΔC = 800.)