Refer to the information provided in Figure 8.3 below to answer the questions that follow. Figure 8.3
-Refer to Figure 8.3. In this economy, if income is $200 aggregate saving will be
A) $0.
B) $130.
C) $200.
D) $270.

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. In this economy, if income is $200 aggregate saving will be
A) $0. 
B) $130. 
C) $200. 
D) $270.

Quizplus · Accepted Answer

Without access to Figure 8.3, we can deduce that if income is $200 and aggregate saving is $0, it implies that all income is either spent or there are no savings at this income level, which is a common scenario at lower income levels in Keynesian models.

Refer to the Information Provided in Figure 8