-Refer to the above diagram.The equation for the saving schedule is:
A) S = .6Y.
B) Y = 60 + .6S.
C) S = 60 + .4Y.
D) S = -60 + .4Y.

Question

-Refer to the above diagram.The equation for the saving schedule is:
A) S = .6Y. 
B) Y = 60 + .6S. 
C) S = 60 + .4Y. 
D) S = -60 + .4Y.

Quizplus · Accepted Answer

The saving schedule typically shows the relationship between savings (S) and income (Y). The equation S = -60 + .4Y suggests that savings start at -60 when income is zero, and increase by 0.4 for each additional unit of income, which is a common form for a saving schedule.

-Refer to the Above Diagram