If the consumption function is C = $200 billion + 0.6Y,

(a) How much do consumers spend with incomes of $8.25 trillion?

I got 5.2 trillion for this.

(b) How much do they save?

??

assuming y is in billions,

c(y) = 200 + .6y
c(8250) = 200 + .6(8250) = 5150
or, 5.2 trillion

looks ok to me.

(b) subtract their spending from their income.

To determine the amount consumers save, we need to subtract their consumption expenditure from their income.

Given the consumption function C = $200 billion + 0.6Y, where Y is the income,

(a) To find how much consumers spend with incomes of $8.25 trillion, we substitute Y = $8.25 trillion into the consumption function:

C = $200 billion + 0.6($8.25 trillion)

C = $200 billion + $4.95 trillion

C = $5.15 trillion

Therefore, consumers spend $5.15 trillion with incomes of $8.25 trillion.

(b) To calculate how much they save, we subtract their consumption expenditure from their income:

Savings = Income - Consumption

Savings = $8.25 trillion - $5.15 trillion

Savings = $3.1 trillion

Therefore, consumers save $3.1 trillion.

To determine the amount consumers spend and save, we can use the consumption function given: C = $200 billion + 0.6Y.

(a) To find out how much consumers spend with incomes of $8.25 trillion, we substitute Y = $8.25 trillion into the consumption function and solve for C:

C = $200 billion + 0.6($8.25 trillion)
C = $200 billion + $4.95 trillion
C = $5.15 trillion

Therefore, consumers spend $5.15 trillion with incomes of $8.25 trillion.

(b) To determine how much consumers save, we need to subtract the amount spent from the total income:

Savings = Total income - Consumption spending
Savings = $8.25 trillion - $5.15 trillion
Savings = $3.1 trillion

Therefore, consumers save $3.1 trillion.