Answer:
Explanation:
To complete the table, you need to calculate the saving (S) at each income level (Yd) using the saving function S = 150 + 0.3Yd. Here's the completed table:
| Income (Yd) | Saving (S) |
|-------------|-------------------|
| 800 | 150 + 0.3(800) = 390 |
| 1,200 | 150 + 0.3(1,200) = 510 |
| 1,800 | 150 + 0.3(1,800) = 630 |
| 2,400 | 150 + 0.3(2,400) = 750 |
Now, let's move on to the second part of your question.
b) Autonomous consumption refers to the minimum level of consumption that occurs even when income (Yd) is zero. In the given saving function S = 150 + 0.3Yd, the term "150" represents the autonomous saving, and in this case, it's also the autonomous consumption because consumption and saving are complementary.
The relationship between income and consumption can be expressed through the consumption function:
\[ C = C_{\text{autonomous}} + c(Yd) \]
Where:
- \( C \) is the total consumption,
- \( C_{\text{autonomous}} \) is autonomous consumption,
- \( c \) is the marginal propensity to consume (MPC),
- \( Yd \) is disposable income.
In this case, the autonomous consumption (\( C_{\text{autonomous}} \)) is $150, and the marginal propensity to consume (\( c \)) is 0.3 (from the saving function). So, the relationship between income and consumption is:
\[ C = 150 + 0.3Yd \]
This equation shows that consumption is composed of an autonomous component (independent of income) and a component that depends on disposable income. As disposable income increases, consumption also increases, with the marginal propensity to consume being 0.3, indicating that 30% of any increase in disposable income is spent on consumption.