Use the following figure to answer the questions : Figure9.1:

-In Figure 9.1,at an income level of $2,000 billion,
A)Consumption equals $1,500 billion.
B)Saving equals $0.
C)The MPC equals 0.80.
D)There is dissaving.

Question

Use the following figure to answer the questions : Figure9.1:

-In Figure 9.1,at an income level of $2,000 billion,
A)Consumption equals $1,500 billion. 
B)Saving equals $0. 
C)The MPC equals 0.80. 
D)There is dissaving.

Quizplus · Accepted Answer

At an income level of $2,000 billion, if saving equals $0, it means that all income is being consumed, indicating that consumption equals income, and there is no saving or dissaving.

Use the Following Figure to Answer the Questions : Figure9