Given the consumption schedule, it is possible to graph the relevant saving schedule by
A) subtracting the MPC from 1 at each level of income.
B) subtracting investment from consumption at each level of GDP.
C) plotting the horizontal differences between the consumption schedule and the 45-degree line.
D) plotting the vertical differences between the consumption schedule and the 45-degree line.

Question

Quizplus · Accepted Answer

The saving schedule can be graphed by plotting the vertical differences between the consumption schedule and the 45-degree line, which represents total income at each level. This method shows the amount of saving (or dissaving) at different income levels.

Given the Consumption Schedule, It Is Possible to Graph the Relevant