If Zach's saving function is of the form [S = -300 + 0.2Y], his consumption equals his income at an income level of
A) 300.
B) 600.
C) 1,040.
D) 1,500.

Name: If Zach's saving function is of the form [S = -300 + 0.2Y], his consumption equals his income at an income level of A) 300. B) 600. C) 1,040. D) 1,500.
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Question

Quizplus · Accepted Answer

At the income level where consumption equals income, savings (S) is zero. Setting S = 0 in the equation -300 + 0.2Y = 0, solving for Y gives Y = 1,500.

If Zach's Saving Function Is of the Form [S =