The figure given below represents the saving function of an economy.
Figure 9.1

-Refer to Figure 9.1. When disposable income equals zero:
A) autonomous consumption equals zero.
B) the maximum amount of saving equals $10 billion.
C) autonomous income equals $10 billion.
D) autonomous consumption equals $10 billion.
E) consumption is negative.

Question

The figure given below represents the saving function of an economy.
Figure 9.1
 
-Refer to Figure 9.1. When disposable income equals zero:
A) autonomous consumption equals zero. 
B) the maximum amount of saving equals $10 billion. 
C) autonomous income equals $10 billion. 
D) autonomous consumption equals $10 billion. 
E) consumption is negative.

Quizplus · Accepted Answer

Autonomous consumption is the level of consumption when disposable income is zero, which is given as $10 billion in the scenario.

The Figure Given Below Represents the Saving Function of an Economy