Refer to the information provided in Figure 23.3 below to answer the question(s) that follow. Figure 23.3
-Refer to Figure 23.3. For this society, aggregate saving is ________ if aggregate income is above $200.
A) negative
B) positive
C) zero
D) equal to aggregate consumption

Question

Refer to the information provided in Figure 23.3 below to answer the question(s) that follow.  Figure 23.3
-Refer to Figure 23.3. For this society, aggregate saving is ________ if aggregate income is above $200.
A) negative 
B) positive 
C) zero 
D) equal to aggregate consumption

Quizplus · Accepted Answer

From the graph, we can see that the saving line is above the 45-degree line (which represents the line where aggregate saving equals aggregate consumption) when aggregate income is above $200. This means that aggregate saving is positive. Therefore, the correct answer is B.

Refer to the Information Provided in Figure 23