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. Derive the saving function and the consumption function. O A. S= -800-0.25Y and C= 800 - 0.75Y O B. S= -800 +0.25Y and C= 800 +0.75Y O C. S= -800-0.025Y and C= 800 -0.075Y O D. S= - 800-0.25Y and C= 800 + 0.75Y Consider the graph of these functions. The consumption function has a y-intercept of and is The saving function has a y-intercept of and is 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. Derive the saving function and the consumption function. O A. S= -800-0.25Y and C= 800 - 0.75Y O B. S= -800 +0.25Y and C= 800 +0.75Y O C. S= -800-0.025Y and C= 800 -0.075Y O D. S= - 800-0.25Y and C= 800 + 0.75Y Consider the graph of these functions. The consumption function has a y-intercept of and is The saving function has a y-intercept of and is The consumption curve crosses the 45-degree line at a level of output of (Enter your response as an integer.)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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