Use the figure below to answer the following questions.

Figure 27.1.1
This figure describes the relationship between consumption expenditure and disposable income for an economy.
-Refer to Figure 27.1.1. When disposable income is $500 billion, saving is equal to
A)disposable income.
B)zero.
C)$20 billion.
D)consumption expenditure.
E)$40 billion.

Question

Use the figure below to answer the following questions.
  
Figure 27.1.1
This figure describes the relationship between consumption expenditure and disposable income for an economy.
-Refer to Figure 27.1.1. When disposable income is $500 billion, saving is equal to
A)disposable income. 
B)zero. 
C)$20 billion. 
D)consumption expenditure. 
E)$40 billion.

Quizplus · Accepted Answer

When disposable income is $500 billion, saving is zero because all income is used for consumption, leaving no amount for saving.

Use the Figure Below to Answer the Following Questions