If income increases by $100 and saving increases by $25, the slope of the saving function equals
A)1/4
B)1/5
C)1/2
D)3/4
E)3/5

Name: If income increases by $100 and saving increases by $25, the slope of the saving function equals A)1/4 B)1/5 C)1/2 D)3/4 E)3/5
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Question

Quizplus · Accepted Answer

The slope of the saving function is the change in saving divided by the change in income. Here, it is $25/$100 = 1/4.

If Income Increases by $100 and Saving Increases by $25