Name: Brian

Who is asking: Student
Level: Secondary

Question:
If consumption is $11 billion when disposable income is 0 and the marginal propensity to consume is dC/dy = 1/(2y+4)1/2+0.3(in billions of dollars), find the national consumption function.

C(y) is the national consumption function in billions of dollars where y is the disposable income. Since you know dC/dy you can antidifferentiate to find C(y). This will involve an unknown constant which you can evaluate since C(0) = $11 billion.