Answer Happy

Suppose you have the following disposable income and consumption data for an economy, as shown in the table below. a. Using this data, compute the value for savings at each level of disposable income. Instructions: Enter your answer as a whole number. If you are entering a negative number include a minus sign. Consumption and Savings Disposable Income (dollars) $20,000 21,000 22,000 23,000 24,000 25,000 26,000 27,000 28,000 Consumption (dollars) $22,000 22,500 23,000 23,500 24,000 24,500 25,000 25,500 26,000 Savings (dollars) $

b. Using the information in the table, plot the points on a graph and use them to draw the savings schedule for this economy. Instructions: Use the tool provided "S" to plot the line point by point (9 points total) starting at an income level of $20,000. Ⓡ Savings (dollars) 2,500 2,000 1,500 1,000 500 -,500 -1,000 -1,500 -2,000 -2,500 0 Savings Schedule (19000, -1500) 19,000 20,000 22,000 21,000 23,000 24,000 25,000 26,000 27,000 Disposable Income (dollars) 28,000 29,000 Tools S

c. The equilibrium level of disposable income, where disposable income equals consumption, is $ d. What is the slope of this savings schedule? Instructions: Round your answer to one decimal place. e. Assume that any taxes in this economy are a fixed sum so that changes in disposable income are the same as changes in real GDP. In this case, the slope represents the marginal propensity to save