The consumption function is C = 50 + 0.8Y. The saving function is

S = 50 + 0.2YCorrect answerYour answerS = −50 + 0.8YCorrect answerYour answerS = −50 + 0.2YCorrect answerYour answerS = 50 − 0.8YCorrect answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer C

Correct answer: C

S = Y − C = Y − 50 − 0.8Y = −50 + 0.2Y.

Concept: From C to S
Typical timeTypical: 70 s
Your timeYours: —

The rule this testsThe saving function and break-even

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The consumption function is C = 50 + 0.8Y. The saving function is

Explanation