Question

Since disposable income is either consumed or saved, the fraction of any disposable income consumed plus the fraction saved must be O greater than 1 O equal to 1 O less than 0 O equal to zero

Name: since disposable income is either consumed or saved the fraction of any disposable income consumed plus the fraction saved must be o greater than 1 o equal to 1 o less than 0 o equal to zero 72276
Uploaded: 2021-12-21T07:30:23-08:00
Duration: 1 min 13 s
Channel: Prashant Bana
Description: since disposable income is either consumed or saved the fraction of any disposable income consumed plus the fraction saved must be o greater than 1 o equal to 1 o less than 0 o equal to zero 72276

          Since disposable income is either consumed or saved, the fraction of any disposable income consumed plus the fraction saved must be
O greater than 1
O equal to 1
O less than 0
O equal to zero

$since disposable income is either consumed or saved the fraction of any disposable income consumed plus the fraction saved must be o greater than 1 o equal to 1 o less than 0 o equal to zero 72276$

Added by Gema C.

Principles of Economics

Gregory Mankiw 8th Edition

Instant Answer

Solved by Expert Prashant Bana

12/21/2021

Step 1

This means that the total disposable income is the sum of the amount consumed and the amount saved. Let $D$ be the disposable income, $C$ be the amount consumed, and $S$ be the amount saved. Then, we have: $$D = C + S$$ We are interested in the fraction of Show more…

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Since disposable income is either consumed or saved, the fraction of any disposable income consumed plus the fraction saved must be O greater than 1 O equal to 1 O less than 0 O equal to zero