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The consumption function is given as C = 40+0.6Y. Derive saving function. |
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Answer» We know, Income (Y) = Consumption ( C) + Saving (S). It means, S= Y-C `" "…(i)` Given: C= 40+0.6Y `" "…(ii)` Putting value of C from (ii) in (i), we get: S=Y-(40+0.6Y) S=Y-40-0.6Y S=-40+0.4Y |
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