Suppose the consumption function is C = $100 + 0.85Y_D.If disposable income is $400,saving is A)-$40.00. B)$40.00. C)-$15.00. D)$15.00.

Name: Suppose the consumption function is C = $100 + 0.85Y D .If disposable income is $400,saving is A)-$40.00. B)$40.00. C)-$15.00. D)$15.00.
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The consumption function is C = $100 + 0.85Y_D. With disposable income (Y_D) of $400, consumption (C) is $100 + 0.85($400) = $100 + $340 = $440. Since saving (S) is disposable income minus consumption, S = $400 - $440 = -$40.00.

Suppose the Consumption Function Is C = $100 + 0