Question: (Consumption and Saving) Suppose that consumption equals $500 billion when disposable income is $0 and that each increase of $100 billion in disposable income causes
(Consumption and Saving) Suppose that consumption equals $500 billion when disposable income is $0 and that each increase of $100 billion in disposable income causes consumption to increase by $70 billion. Draw a graph of the saving function using this information.
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