If Ap is total autonomous planned spending,c is the marginal propensity to consume,s is the marginal propensity to save,and Y is the equilibrium income level,then induced saving is
A)Ap/Y.
B)Y = Ap/s.
C)sY.
D)cAp.

Question

Quizplus · Accepted Answer

Induced saving is the amount of saving that occurs at the equilibrium income level, which is represented by Y. The formula for induced saving is sY, where s is the marginal propensity to save. This means that as income increases, the amount of saving also increases proportionally to the marginal propensity to save. Options A, B, and D do not represent the formula for induced saving.

If Ap Is Total Autonomous Planned Spending,c Is the Marginal