If income in a closed, private economy is $50 and consumption is $35, what is the amount of savings?Multiple choice question.$15$85$35$50

Break Down the Problem

1. Understand the relationship between income, consumption, and savings in an economy.
2. Identify the formula to calculate savings.

Relevant Concepts

Savings can be calculated using the formula:

$\text{Savings} = \text{Income} - \text{Consumption}$

Analysis and Detail

1. Given that the total income in the economy is $50 and the consumption is$35, we will now calculate the savings:

$\text{Savings} = 50 - 35$

Verify and Summarize

Now, let's perform the calculation:

$\text{Savings} = 15$

This matches our expectation from the calculation. Therefore, we can confidently state the savings amount.

Final Answer

The amount of savings is $15.