When C= 300 + 0.8y and y= 500, saving at zero level income will be a.300 b.-300 c.1100 d.800 please explain with steps

Dear Student.

Your question is not clear and appears to be incomplete. Recheck your question or please be a little specific about the name of the chapter/textbook to which you are referring here so that we can provide you with some meaningful help
Regards. 

  • -1

We Know S = I

Formula Y = C + S

At zero income level Y = 0

C = 300 + 0.8 (0)

C = 300

Y = 0

S = Y - C

S = 0 - 300

S = -300
So the answer is option b -300 

  • 2
What are you looking for?