C=400+0.7Y I=200+0.2Y Calculate Savings in Closed Economy??

  C=400+0.7Y

 I=200+0.2Y

Calculate Savings  in Closed Economy??

In closed economy,

Y=C+I

Y=400+0.7Y+200+0.2Y

Y=600+0.9Y

Y-0.9Y=600

0.1Y=600

Y=600/0.1

Y=6000

Equilibrium income Y=6000

 C=400+0.7Y

C=400+0.7×6000

C=400+4200

C=4600

Y=C+S

S=Y-C

S=6000-4600

S=1400

Consumption 4600 and savings 1400