-The equation for the above saving schedule is: A) Y_d = -20 + .8S. B) Y_d = 20 + .2S. C) S = 20 + .8Y_d. D) S = -20 + .2Y_d.

Question

Quizplus · Accepted Answer

The saving schedule equation is typically expressed as S = a + bYd, where 'a' is the autonomous saving (intercept) and 'b' is the marginal propensity to save (slope). Here, D) fits this form with S = -20 + 0.2Yd, indicating autonomous dissaving of 20 and a marginal propensity to save of 0.2.

-The Equation for the Above Saving Schedule Is