Assume the level of saving that would take place in an economy is - $200 even when aggregate output is zero. Also assume that the marginal propensity to save is .1. Derive the algebraic expression for the saving function and the consumption function.

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The Answer of Assume the level of saving that would take place in an economy is - $200 even when aggregate output is zero. Also assume that the marginal propensity to save is .1. Derive the algebraic expression for the saving function and the consumption function.

Assume the Level of Saving That Would Take Place in an Economy