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21 March, 05:15

If your income is $35,000 and the average propensity to save is 0.46, what is consumption?

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  1. 21 March, 05:34
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    Disposable income = consumption + savings

    $35,000 = consumption + $16,100 (which is. 46% of the income for savings)

    then we need to subtract $16,100 from both sides which leaves us with

    $35,000 - $16,100 = $18,900

    Consumption = $18,900
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