Use the following figure to answer the questions : Figure9.3:

-According to Figure 9.3,which of the following is true?
A)Dissaving occurs at disposable income levels above $20 billion.
B)Consumption is $10 billion when disposable income is zero.
C)The APC is greater than 1 at disposable income levels above $20 billion.
D)At a disposable income level of $20 billion, consumption is zero.

Question

Use the following figure to answer the questions : Figure9.3:
 
-According to Figure 9.3,which of the following is true?
A)Dissaving occurs at disposable income levels above $20 billion. 
B)Consumption is $10 billion when disposable income is zero. 
C)The APC is greater than 1 at disposable income levels above $20 billion. 
D)At a disposable income level of $20 billion, consumption is zero.

Quizplus · Accepted Answer

According to Figure 9.3, when disposable income is zero, consumption is $10 billion. Therefore, option B is true. Option A is incorrect because dissaving is not shown in the graph. Option C is incorrect because the APC cannot be greater than 1 as it represents a fraction of income spent on consumption. Option D is incorrect because consumption is not zero when disposable income is $20 billion.

Use the Following Figure to Answer the Questions : Figure9