At a level of real disposable income of 0, consumption is $1000. Then
A) saving equals 0.
B) saving equals -$1000.
C) savings equal -$1000.
D) saving equals $1000.

Name: At a level of real disposable income of 0, consumption is $1000. Then A) saving equals 0. B) saving equals -$1000. C) savings equal -$1000. D) saving equals $1000.
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Question

Quizplus · Accepted Answer

When real disposable income is 0 and consumption is $1000, it means that individuals are consuming $1000 more than their income, which results in negative saving of -$1000.

At a Level of Real Disposable Income of 0, Consumption