(Figure: Consumption Spending) At point A:
A) saving is $20.
B) consumption is zero.
C) saving is zero.
D) consumption exceeds income by $20.

Name: (Figure: Consumption Spending) At point A: A) saving is $20. B) consumption is zero. C) saving is zero. D) consumption exceeds income by $20.
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Question

(Figure: Consumption Spending)  At point A:
A) saving is $20. 
B) consumption is zero. 
C) saving is zero. 
D) consumption exceeds income by $20.

Quizplus · Accepted Answer

At point A, the consumption spending curve intersects the 45-degree line, which means that consumption equals income. Therefore, saving is zero at point A.

(Figure: Consumption Spending) at Point A