Refer to the information provided in Figure 8.3 below to answer the questions that follow. Figure 8.3
-Refer to Figure 8.3. Which of the following statements is false?
A) Aggregate saving is negative for all income levels below $400 billion.
B) For all aggregate income levels above $200 billion, aggregate consumption is less than aggregate income.
C) If consumption is the only expenditure, this economy would be in equilibrium at an aggregate income level of $200 billion.
D) Saving is negative at all income levels below $200 billion.

Question

Refer to the information provided in Figure 8.3 below to answer the questions that follow.  Figure 8.3
-Refer to Figure 8.3. Which of the following statements is false?
A) Aggregate saving is negative for all income levels below $400 billion. 
B) For all aggregate income levels above $200 billion, aggregate consumption is less than aggregate income. 
C) If consumption is the only expenditure, this economy would be in equilibrium at an aggregate income level of $200 billion. 
D) Saving is negative at all income levels below $200 billion.

Quizplus · Accepted Answer

Aggregate saving is not negative for all income levels below $400 billion. It is only negative for income levels between $200 billion and $400 billion.

Refer to the Information Provided in Figure 8