Assume in a simple economy that the level of saving is - $800 when aggregate output equals zero and that the marginal propensity to save is 0.25. 4.400 Derive the saving function and the consumption function. 3.00 45 OA S-800 0.25Y and C-800 0.75Y 3.200 OB S-800-0.26Y and C800 +0.75Y OC. B-800-0.25Y and C800 -0.75Y OD. S-800 -0.025Y and C800-0.075Y u 2000 1.400 Draw a graph showing these functions. 00 1.) Using the ine drawing tool, draw the consumption function. Label your line C. 200 2.) Using the ine drawing tool, draw the saving function. Label your ine S. 400-4 Note: Carefully folow the instructions above and only draw the required objects. Aggregate incone Y The consumption curve crosses the 45-degree line at a level of output of $ (Enter your response as an integer)

Assume in a simple economy that the level of saving is - $800 when aggregate output equals zero and that the marginal propensity to save is 0.25. 4.400 Derive the saving function and the consumption function. 3.00 45 OA S-800 0.25Y and C-800 0.75Y 3.200 OB S-800-0.26Y and C800 +0.75Y OC. B-800-0.25Y and C800 -0.75Y OD. S-800 -0.025Y and C800-0.075Y u 2000 1.400 Draw a graph showing these functions. 00 1.) Using the ine drawing tool, draw the consumption function. Label your line C. 200 2.) Using the ine drawing tool, draw the saving function. Label your ine S. 400-4 Note: Carefully folow the instructions above and only draw the required objects. Aggregate incone Y The consumption curve crosses the 45-degree line at a level of output of $ (Enter your response as an integer)

Principles of Macroeconomics (MindTap Course List)

7th Edition

ISBN:9781285165912

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter13: Savings,Investment And The Financial System

Section: Chapter Questions

Problem 2QCMC

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