Using Figure 9.1,dissaving occurs at all income levels
A)Above $2,000 billion.
B)Above $3,000 billion.
C)Below $2,000 billion.
D)Below $3,000 billion.

Question

Using Figure 9.1,dissaving occurs at all income levels
A)Above $2,000 billion. 
B)Above $3,000 billion. 
C)Below $2,000 billion. 
D)Below $3,000 billion.

Quizplus · Accepted Answer

Dissaving occurs when the consumption expenditure exceeds income. Looking at Figure 9.1, we can see that at income levels below $2,000 billion, the consumption expenditure (C) line is above the income (Y) line, indicating dissaving. Therefore, the best choice is C, below $2,000 billion.

Using Figure 9.1,dissaving Occurs at All Income Levels