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

Question

Quizplus · Accepted Answer

When disposable income is $0 and consumption is $3500, it means that the individual is dissaving or using savings to finance consumption. Therefore, saving equals -$3500.

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