65 803
Assignments Done
99,4%
Successfully Done
In October 2018

Answer to Question #7407 in Macroeconomics for sharncy

Question #7407
Given that C= 500+ 0.8y, if the level of disposable income is 1000, The level of saving is?
Expert's answer
Let’s indicate, that Y is a level of disposable income, S is the level of saving and C is the level of consumption, then:
Y = S + C
S = Y – C
For the disposable income (1000) the level of savings is:
S = y – C = y – (500+ 0.8y) = 0,2y – 500 = 0,2 * 1000 – 500 = 200 – 500 = -300.
The level of savings is -300, this means that people live in debt.

Need a fast expert's response?

Submit order

and get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!

Comments

No comments. Be first!

Leave a comment

Ask Your question

Submit
Privacy policy Terms and Conditions