-In the above figure, when the interest rate is 8 percent and household income is $40,000, household consumption is
A) $35.000.
B) $60,000.
C) $0.
D) $20,000.

Question

-In the above figure, when the interest rate is 8 percent and household income is $40,000, household consumption is
A) $35.000. 
B) $60,000. 
C) $0. 
D) $20,000.

Quizplus · Accepted Answer

The question suggests a relationship between interest rates, household income, and consumption. Typically, higher interest rates can reduce consumption, but with an income of $40,000, a reasonable consumption level could be $20,000, assuming some savings or other expenses.

-In the Above Figure, When the Interest Rate Is 8