A) use the following data to substitute numerical values for A and B in the consumption and savings equation  B) what is the economic meaning of B? Of (1-b)? C) suppose that the amount of saving that occurs of each level of national income falls by $20 but that the values of B and (1-b) remain unchanged. Restate the saving and consumption equations inserting the new numerical values, and cite a factor that might have caused the change.
A) use the following data to substitute numerical values for A and B in the consumption and savings equation  B) what is the economic meaning of B? Of (1-b)? C) suppose that the amount of saving that occurs of each level of national income falls by $20 but that the values of B and (1-b) remain unchanged. Restate the saving and consumption equations inserting the new numerical values, and cite a factor that might have caused the change.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Linear equations for the consumption, saving schedules take the general form C = a+ bY and S= -a + ( 1 - B) Y, where C, S , and Y are consumption, saving, and national income , respectively. The constant a represents the vertical intercept, and b represents the slope of the consumption schedule.
A) use the following data to substitute numerical values for A and B in the consumption and savings equation 
B) what is the economic meaning of B? Of (1-b)?
C) suppose that the amount of saving that occurs of each level of national income falls by $20 but that the values of B and (1-b) remain unchanged. Restate the saving and consumption equations inserting the new numerical values, and cite a factor that might have caused the change.
Transcribed Image Text:National Income (Y)
$ 0
100
200
300
400
Consumption (C)
$ 80
140
200
260
320
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