If the slope of the consumption schedule is 0.75, then the slope of the saving schedule
A) is 0.25.
B) is 0.75.
C) is 1.25.
D) cannot be determined from the data.

Question

Quizplus · Accepted Answer

The slope of the saving schedule is equal to 1 minus the slope of the consumption schedule. Therefore, if the slope of the consumption schedule is 0.75, the slope of the saving schedule is 1 - 0.75 = 0.25.

If the Slope of the Consumption Schedule Is 0