FIGURE 21-1 -Refer to Figure 21-1.The APC will be equal to one (1.0)when disposable income is equal to A)0. B)Y₁. C)Y₂. D)Y₃. E)desired saving.

Question

Quizplus · Accepted Answer

According to the graph, when disposable income is equal to Y₂, the APC will be equal to 1.0, which means that all disposable income is being consumed and none is being saved. The other options are not correct because they either represent zero disposable income (A) or do not correspond to a point on the graph where the APC is equal to 1.0 (B, D, E).

FIGURE 21-1 -Refer to Figure 21-1.The APC Will Be Equal to One