Answer the question on the basis of the following data for a hypothetical economy. $\begin{array}{cc}
\underline{\text { Disposable Income} } &\underline{ \text { Saving } }\
0& \mathbf{- 1 0} \
50 & 0 \
100 & 10 \
150 & 20 \
200 & 30
\end{array}$ Refer to the given data.If plotted on a graph,the slope of the saving schedule would be:
A) .80.
B) .10.
C) .20.
D) .15.

Question

Answer the question on the basis of the following data for a hypothetical economy. $\begin{array}{cc}
\underline{\text { Disposable Income} } &\underline{ \text { Saving } }\
0& \mathbf{- 1 0} \
50 & 0 \
100 & 10 \
150 & 20 \
200 & 30
\end{array}$  Refer to the given data.If plotted on a graph,the slope of the saving schedule would be:
A) .80.
B) .10.
C) .20.
D) .15.

Quizplus · Accepted Answer

The slope of the saving schedule is calculated by dividing the change in savings (vertical axis) by the change in disposable income (horizontal axis). In this case, the change in savings is $100 billion (1000-900) and the change in disposable income is $500 billion (5000-4500). Therefore, the slope of the saving schedule would be 100/500 = .20.

Answer the Question on the Basis of the Following Data