Help Please!consumption function is C=2500+.70Y where Y is disposable income. Y=32600. saving is = to??

how do i solve this??

Help Please!consumption function is C=2500+.70Y where Y is disposable income. Y=32600. saving is = to??
First find consumption:


C=2500+.7*(32600)


C=2500+22820=25320





Consumption + Savings is the total disposable income, so:


Y=C+S


S=Y-C=32600-25320=7280
Reply:Saving is equal to income minus consumption.





With reference to the equation, this is computed as,





Saving = Y - C


= 32600 - [2500 + .7(32600)]


= 32600 - 25320


= 7280
Reply:Method 1:(substitution)





C=2500+0.7Y


Y=32600


thus C=2500+0.7(32600)


C=2500+22820


C=25320


C+S=Y


S=32600-25320


S=7280





Method 2:(using the savings function)


Y=a+bY [a- autonomous cons; b- MPC]


S= -a+(1-b)Y


S= -2500+0.3(32600)


S=-2500+9780


S=7280

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