-In the figure above, negative saving occurs
A) at all levels of disposable income.
B) when disposable income is $10 trillion.
C) when disposable income is $15 trillion.
D) when disposable income is $20 trillion.

Question

-In the figure above, negative saving occurs
A) at all levels of disposable income. 
B) when disposable income is $10 trillion. 
C) when disposable income is $15 trillion. 
D) when disposable income is $20 trillion.

Quizplus · Accepted Answer

Negative saving occurs when disposable income is at a level where consumption exceeds disposable income. This typically happens at lower levels of disposable income, such as $10 trillion, assuming a consumption function that intersects the disposable income axis above the origin.

-In the Figure Above, Negative Saving Occurs