-In the above figure, when the interest rate is 8 percent and household income is $40,000, household consumption is
A) $0.
B) $35.000.
C) $20,000.
D) $60,000.

Question

-In the above figure, when the interest rate is 8 percent and household income is $40,000, household consumption is
A) $0. 
B) $35.000. 
C) $20,000. 
D) $60,000.

Quizplus · Accepted Answer

The question implies a relationship between interest rates, income, and consumption. Typically, consumption is a portion of income, and $20,000 is a reasonable consumption level given a $40,000 income.

-In the Above Figure, When the Interest Rate Is 8