Refer to the information provided in Figure 23.1 below to answer the question(s) that follow. Figure 23.1
-Refer to Figure 23.1. An increase in the amount of consumption this household makes when this household's income is zero
A) makes the consumption function steeper.
B) makes the saving function flatter.
C) shifts the consumption function downward.
D) shifts the saving function downward.

Question

Refer to the information provided in Figure 23.1 below to answer the question(s) that follow.  Figure 23.1
-Refer to Figure 23.1. An increase in the amount of consumption this household makes when this household's income is zero
A) makes the consumption function steeper. 
B) makes the saving function flatter. 
C) shifts the consumption function downward. 
D) shifts the saving function downward.

Quizplus · Accepted Answer

An increase in consumption when income is zero means the household is dissaving more, which shifts the saving function downward.

Refer to the Information Provided in Figure 23