If Yt and Ct equal a consumer's income and consumption during a particular period, respectively, then saving during that period, St, is:

Name: If Yt and Ct equal a consumer's income and consumption during a particular period, respectively, then saving during that period, St, is:
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Question

Quizplus · Accepted Answer

Savings (St) during a particular period is the difference between the income (Yt) and consumption (Ct) during that period. Therefore, the correct formula for calculating savings is St = Yt - Ct.

If Yt and Ct Equal a Consumer's Income and Consumption