Question: Plot both consumption and savings relationships on one grid with consumption and saving shown on the vertical axis and disposable income on the horizontal axis.

Plot both consumption and savings relationships on one grid with consumption and saving shown on the vertical axis and disposable income on the horizontal axis. Using the property of the 45o line, explain and indicate where savings would be zero.

Plot both consumption and savings relationships on one grid with consumption and

YD C S AY D AC MPC APC MPS APS 0 30 -30 n.a. n.a. n.a. n.a. n.a. n.a. 100 70 30 100 40 0.4 0.70 0.6 0.30 150 90 60 50 20 0.4 0.60 0.6 0.40 200 110 90 50 20 0.4 0.55 0.6 0.45 400 190 210 200 80 0.4 0.48 0.6 0.52 800 350 450 400 160 0.4 0.44 0.6 0.56 1,000 430 570 200 80 0.4 0,43 0.6 0.57

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