Given the consumption schedule, it is possible to graph the relevant saving schedule by:
A)subtracting the MPC from 1 at each level of income.
B)subtracting investment from consumption at each level of GDP.
C)plotting the horizontal differences between the consumption schedule and the 45-degree line.
D)plotting the vertical differences between the consumption schedule and the 45-degree line.
Answer:D
Given the consumption schedule, it is possible to graph the relevant saving schedule by:
A)subtracting the MPC from 1 at each level of income. B)subtracting investment from consumption at each level of GDP. C)plotting the horizontal differences between the consumption schedule and the 45-degree line. D)plotting the vertical differences between the consumption schedule and the 45-degree line.