Question

Given that C = $1,000 + 0.60YD, if the level of disposable income is $1,000, the level of saving is

$600.
$400.
-$600.
-$300.

Answer 1

$600

Step-by-step explanation:

If the level of disposable income is $1,000, then the level of saving is given by the equation C = $1,000 + 0.60YD.

Substituting the value of disposable income, we get:

C = $1,000 + 0.60YD

= $1,000 + 0.60 * $1,000

= $1,000 + $600

= $1,600

Therefore, the level of saving is $1,600 - $1,000 = $600.