Question

Given Table 12-6 below, fill in the values for saving. Assume taxes = $800.

Table 12-6

National Income
$11,400
11,800
12,200
12,600
Consumption
$7,500
7,800
8,100
8,400

What are the savings .

Answer 1

Savings = National Income - Consumption - Taxes

Step-by-step explanation:

Savings are the part of income that is not spent or paid in taxes. So it can be calculated by subtraction consumption from the national income.

National Income (Y) = C+ T + S

Therefore,

S= Y - C - T

That is the part of income that is not spent or paid in taxes is called savings.

National Income Consumption Taxes Savings

$11,400 $7,500 $800 $3,100

$11,800 $7,800 $800 $3,200

$12,200 $8,100 $800 $3,300

$12,600 $8,400 $800 $3,400