Answer the questions below:
(A)Suppose your boss gives you a $100 raise. Identify the three categories or uses among which you will divide the $100. Hint: Do you get to keep the entire $100?
(B)Suppose the consumption function is C = 100 + 75YD, where YD is disposable income. Prove that the marginal propensity to save is 0.25.

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The Answer of Answer the questions below:
(A)Suppose your boss gives you a $100 raise. Identify the three categories or uses among which you will divide the $100. Hint: Do you get to keep the entire $100?
(B)Suppose the consumption function is C = 100 + 75YD, where YD is disposable income. Prove that the marginal propensity to save is 0.25.

Answer the Questions Below