Figure 13-3
-Refer to Figure 13-3. Which of the following statements is false?
A) At points j, k, and m, consumers spend all their disposable income on consumption.
B) The amount of consumption is positive even when disposable income equals zero.
C) The slope of the consumption function is the marginal propensity to consume.
D) At points j, k, and m, the marginal propensity to save equals zero.

Question

Figure 13-3 
-Refer to Figure 13-3. Which of the following statements is false?
A) At points j, k, and m, consumers spend all their disposable income on consumption. 
B) The amount of consumption is positive even when disposable income equals zero. 
C) The slope of the consumption function is the marginal propensity to consume. 
D) At points j, k, and m, the marginal propensity to save equals zero.

Quizplus · Accepted Answer

The marginal propensity to save is not necessarily zero at points j, k, and m; it depends on the slope of the consumption function, which represents the marginal propensity to consume.

Figure 13-3 -Refer to Figure 13-3. Which of the Following Statements Is