Use the following figure to answer the questions : Figure9.7

- Given the information in Figure 9.7,dissaving would occur at all income levels below
A)$100 billion per year.
B)$150 billion per year.
C)$200 billion per year.
D)$300 billion per year.

Question

Use the following figure to  answer the questions : Figure9.7

- Given the information in Figure 9.7,dissaving would occur at all income levels below
A)$100 billion per year. 
B)$150 billion per year. 
C)$200 billion per year. 
D)$300 billion per year.

Quizplus · Accepted Answer

In Figure 9.7, the consumption line (C) is above the 45-degree line (S=Y) until the $100 billion level of income is reached. This means that at all income levels below $100 billion, consumption is greater than income (C>Y), indicating dissaving.

Use the Following Figure to Answer the Questions