According to the consumption function stated above, consumption is a function of disposable income. This implies that the saving schedule is _____. If consumption was a function of disposable income and the real interest rate, such thatC= 1,000 + 0.75(Y-T) - 50r, the saving schedule would be _____.

Select one:

A.

Horizontal, vertical

B.

Horizontal, upward sloping Incorrect

Correct

C.

Vertical, upward sloping

D.

Vertical, downward sloping