At a level of disposable income of $0, consumption expenditure is $3500. Then
A) the MPC = zero.
B) saving equals $3500.
C) saving equals - $3500.
D) saving equals 0.

Question

Quizplus · Accepted Answer

When disposable income is $0, consumption expenditure of $3500 implies that saving is negative, specifically -$3500, because the consumption is financed by borrowing or using past savings.

At a Level of Disposable Income of $0, Consumption Expenditure