(Advanced analysis)Answer the question on the basis of the following consumption schedule: C = 20 + .9Y,where C is consumption and Y is disposable income. Refer to the given data.At an $800 level of disposable income,the level of saving is:
A) $180.
B) $740.
C) $60.
D) $18.

Question

Quizplus · Accepted Answer

We can calculate the level of consumption at a disposable income of $800 as: 
C = 20 + 0.9Y
C = 20 + 0.9($800)
C = $740

Saving (S) is the difference between disposable income (Y) and consumption (C): 
S = Y - C 
S = $800 - $740 
S = $60

Therefore, the level of saving at a disposable income of $800 is $60, which corresponds to answer choice C.

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