Ask Question
8 September, 20:20

If your income is $35,000 and the average propensity to save is 0.46, what is consumption?

+2
Answers (1)
  1. 8 September, 20:39
    0
    Disposable income = consumption + savings

    $35,000 = consumption + $16,100 (which is. 46% of the income for savings)

    then we need to subtract $16,100 from both sides which leaves us with

    $35,000 - $16,100 = $18,900

    Consumption = $18,900
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “If your income is $35,000 and the average propensity to save is 0.46, what is consumption? ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers