What will be the value of savings, if APC = 0.6, national income = 15,000?
Answer & explanation
Correct answer: option 4
The correct answer is Option 4: None of the above
APC = 0.6, as, APS = 1 - APC, then APS = 0.4
APS = \(\frac{S }{Y }\)
0.4 = \(\frac{S }{15,000 }\)
S = 0.4 * 15,000
C = 6,000