Solved

Consider the Consumption Function in a Simple Macro Model with No

Question 12

Multiple Choice

Consider the consumption function in a simple macro model with no taxes.At the level of national income where APC = 1,the nation's households are


A) consuming all of their disposable income.
B) allocating their income equally between saving and consumption.
C) saving a portion of their income,but saving is less than consumption.
D) spending more than their current income.
E) saving all of their disposable income.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents