FIGURE 21-1
-Refer to Figure 21-1. If disposable income is Y3, the level of desired saving is
A) DE.
B) FD.
C) Y3F.
D) Y3D.
E) Y2Y3.

Name: FIGURE 21-1 -Refer to Figure 21-1. If disposable income is Y3, the level of desired saving is A) DE. B) FD. C) Y3F. D) Y3D. E) Y2Y3.
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Question

FIGURE 21-1
-Refer to Figure 21-1. If disposable income is Y3, the level of desired saving is
A) DE. 
B) FD. 
C) Y3F. 
D) Y3D. 
E) Y2Y3.

Quizplus · Accepted Answer

The level of desired saving is the vertical distance between the 45-degree line and the saving curve at a given level of disposable income. At Y3, the vertical distance is DE.

FIGURE 21-1 -Refer to Figure 21-1. If Disposable Income Is Y3, the Y3