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it is given that the ratio of APS to APC is 2/7
Calculate the ratio of Consumption to savings
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Solved in 2 steps
- Define time preferences for consumptionConsumers become pessimistic about the state of the economy and futureproductivity growth.The table contains data on the relationship between saving and income. Rearrange these data into a meaningful order and graph them on the accompanying grid. What is the slope of the line? The vertical intercept? Write the equation that represents this line. What would you predict saving to be at the $12,500 level of income?