ADVANCED ANALYSIS Linear equations for the consumption and saving schedules take the general form C  a  bY and S  a  (1  b)Y, where C, S, and Y are consumption, saving, and national income, respectively. The constant a represents the vertical intercept, and b represents the slope of the consumption schedule.

a. Use the following data to substitute numerical values for a and b in the consumption and saving equations:

b. What is the economic meaning of b? Of (1  b)?

c. Suppose that the amount of saving that occurs at each level of national income falls by $20 but that the values of b and (1 

b) remain unchanged. Restate the saving and consumption equations for the new numerical values, and cite a factor that might have caused the change.