Refer to the information provided in Figure 8.1 below to answer the questions that follow. Figure 8.1
-Refer to Figure 8.1. A(n) ________ in the amount of ________ this household makes when this household's income is zero shifts the saving function downward.
A) decrease; consumption
B) decrease; spending
C) increase; saving
D) increase; consumption

Question

Refer to the information provided in Figure 8.1 below to answer the questions that follow.  Figure 8.1
-Refer to Figure 8.1. A(n) ________ in the amount of ________ this household makes when this household's income is zero shifts the saving function downward.
A) decrease; consumption 
B) decrease; spending 
C) increase; saving 
D) increase; consumption

Quizplus · Accepted Answer

An increase in consumption when the household's income is zero would shift the saving function downward, as it implies the household would be saving less at any given level of income, assuming other factors remain constant.

Refer to the Information Provided in Figure 8