--%>

Depict the slope of the line

The given table contains data on the relationship among saving and income.  Rearrange these data in a meaningful order and graph them onto the accompanying grid. Depict the slope of the line?  And vertical intercept? Interpret the meaning of the slope and the intercept both. Write down the equation that represents this line. What would you calculate saving to be at the $12,500 level of income?

421_slope of the line.png

E

Expert

Verified

Income column:  $0; $5,000; $10,000, $15,000; $20,000. Saving column: $-500; 0; $500; $1,000; $1,500.  Slope = 0.1 (= $1,000 - $500)/($15,000 - $10,000). Vertical intercept = $-500. The slope illustrates the amount saving will rise for every $1 rise in income; the intercept illustrates the amount of saving occurring whereas income is zero. Equation: S = $-500 + 0.1Y (where S is saving and Y is income). Saving is $750 at the $12,500 income level.

   Related Questions in Finance Basics

  • Q : Crowding out influence Normal 0 false

    Normal 0 false false

  • Q : Explain Budget Cycle Budget Cycle : The

    Budget Cycle: The time period needed to made a state financial plan and enacts that part of it applying to the budget year. The Significant events in the cycle comprise: • The preparation of G

  • Q : Which ratios would banker is most

    Which ratios would banker is most interested while considering whether to approve an application for short-term business loan? Describe.Bankers and other lenders employ liquidity ratios to distinguish whether to extend short-term credit to a fir

  • Q : Illustrate a market of fictitious

    Illustrate a market wherein the equilibrium dollar price of one unit of fictitious currency Zee is $5 (the exchange rate is $5 = Z1). Then illustrates on your diagram a decline in the demand for Zee. a. Referring to this diagram, d

  • Q : Explain the investment opportunity

    Explain the investment opportunity schedule (IOS)? How does it help financial managers take business decisions? The investment opportunity schedule illustrates graphically proposed capital budgeting projects depicting the IRR and dollar amount

  • Q : What is Local Assistance Local

    Local Assistance (LA): The character of expenditures prepared for the support of local government or other locally administered actions.

  • Q : Equilibrium GDP for the open economy

    Normal 0 false false

  • Q : Effect of foreign imports Normal 0

    Normal 0 false false

  • Q : What is FERA FERA stands for The

    FERA stands for The Federal Emergency Relief Administration. The program was renamed as a direct relief operation in Roosevelt Administration. It was a form of an unemployment insurance.

  • Q : Explain Budget Bill Budget Bill : The

    Budget Bill: The legislation symbolizing the Governor’s proposal for spending authorization for the subsequent fiscal year. The Budget Bill is all set by the Department of Finance and submitted to each house of the Legislature i