Question

saving = income formula​

Answer 1

Answer:

Marginal propensity to save), Y = Income. For example, the saving equation S = – 30 + (1- 0.75) Y means – 30 is dissaving (or autonomous saving that needs to take place to finance autonomous consumption). As income increases, 0.25 (= 1 – 0.75) or 25% of additional income is saved.