-In the above figure, when disposable income is greater than $12 trillion, then
A) savings are negative.
B) savings are positive.
C) the MPS is negative.
D) the MPC is greater than 1.

Question

-In the above figure, when disposable income is greater than $12 trillion, then
A) savings are negative. 
B) savings are positive. 
C) the MPS is negative. 
D) the MPC is greater than 1.

Quizplus · Accepted Answer

When disposable income is greater than $12 trillion, savings are positive because individuals have more income to allocate towards savings after consumption.

-In the Above Figure, When Disposable Income Is Greater Than