Use the information below to answer the following questions.
Fact 27.1.1
In an economy, when disposable income increases from $400 billion to $500 billion, consumption expenditure increases from $480 billion to $540 billion.
-Consider Fact 27.1.1. When disposable income increases from $400 billion to $500 billion, saving
A)increases by $40 billion.
B)increases by an unknown amount.
C)decreases by an unknown amount.
D)increases by $60 billion.
E)decreases by $60 billion.

Question

Quizplus · Accepted Answer

When disposable income increases by $100 billion ($500 billion - $400 billion), consumption increases by $60 billion ($540 billion - $480 billion). Therefore, saving increases by the remaining $40 billion ($100 billion - $60 billion).

Use the Information Below to Answer the Following Questions