In a simple, closed economy (no government or foreign sector), if disposable income increases by $100 and $70 is consumed, _____ is saved.

Name: In a simple, closed economy (no government or foreign sector), if disposable income increases by $100 and $70 is consumed, _____ is saved.
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Question

Quizplus · Accepted Answer

The total increase in disposable income is $100. Out of this, $70 is consumed, which means that $30 remains. Therefore, the amount saved is $30.

In a Simple, Closed Economy (No Government or Foreign Sector)