The figure given below represents the consumption function of a country.
Figure 9.3

-Refer to Figure 9.3. The savings function of the country will have a positive intercept at all income levels of _____.
A) less than $200
B) greater than $200
C) less than $600
D) greater than $400
E) less than $800

Question

The figure given below represents the consumption function of a country.
Figure 9.3
 
-Refer to Figure 9.3. The savings function of the country will have a positive intercept at all income levels of _____.
A) less than $200 
B) greater than $200 
C) less than $600 
D) greater than $400 
E) less than $800

Quizplus · Accepted Answer

The savings function will have a positive intercept at all income levels greater than $400 because at this income level, people start saving a portion of their income.

The Figure Given Below Represents the Consumption Function of a Country