The figure given below represents the consumption function of a country. Figure 9.3 Refer to Figure 9.3.When disposable income is $800, consumption spending must equal:
A)$200.
B)$700.
C)$600.
D)$800.
E)$400.

Question

The figure given below represents the consumption function of a country. Figure 9.3  Refer to Figure 9.3.When disposable income is $800, consumption spending must equal:
A)$200. 
B)$700. 
C)$600. 
D)$800. 
E)$400.

Quizplus · Accepted Answer

According to the consumption function, when disposable income is $800, the consumption spending is $600. Therefore, the correct choice is C.

The Figure Given Below Represents the Consumption Function of a Country