# The following table contains data on the relationship between saving and income. Rearrange these...

## Question:

The following table contains data on the relationship between saving and income. Rearrange these data into a meaningful order and graph them.

Income per Year | Savings per Year |
---|---|

$15,000 | $1,000 |

0 | -500 |

10,000 | 500 |

5,000 | 0 |

20,000 | 1,500 |

What is the slope of the line? The vertical intercept? Write the equation that represents this line.

What would you predict savings to be at the $12,500 level of income?

## Savings and Earnings:

A rational human being when earns, do not only use that to fulfill his wants and desires but also keeps some part as savings for unforeseen circumstances. Savings are not a major part of the earnings but when no earnings are with the consumers, these savings are used then.

## Answer and Explanation: 1

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View this answerRearranging the given table gives us the following table:

**Part a)**

Income per Year |
Savings per Year |

0 |
-$500 |

See full answer below.

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Chapter 7 / Lesson 12Discover what MPC and MPS in finance are. Learn about their importance and uses. Discover their formula and how to compute them through the given examples.

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