Use the table below to answer the following questions.
Table 11.1.1
The following table shows the relationship between consumption expenditure C) and disposable income YD) for a hypothetical economy.
-Refer to Table 11.1.1.If YD is $400, then saving is
A)$100.
B)- $125.
C)- $50.
D)zero.
E)$50.

Question

Use the table below to answer the following questions.
Table 11.1.1
The following table shows the relationship between consumption expenditure C) and disposable income YD) for a hypothetical economy. 
-Refer to Table 11.1.1.If YD is $400, then saving is
A)$100. 
B)- $125. 
C)- $50. 
D)zero. 
E)$50.

Quizplus · Accepted Answer

According to the table, when YD is $400, consumption expenditure is $350. Therefore, saving = YD - C = $400 - $350 = -$50. This indicates that individuals are not only not saving, but they are also consuming more than their income, which is represented by negative savings.

Use the Table Below to Answer the Following Questions