At the point where the disposable income line intersects the consumption function, saving:
A)equals consumption.
B)equals disposable income.
C)is less than zero.
D)is equal to zero.

Question

Quizplus · Accepted Answer

At the intersection of the disposable income line and the consumption function, all income is used for consumption, leaving no income for saving, hence saving is zero.

At the Point Where the Disposable Income Line Intersects the Consumption