-The figure above shows a nation's consumption function.If disposable income is $2 trillion,then the MPC is ________ and saving is ________.
A)positive;zero
B)positive;positive
C)positive;negative
D)negative;positive
E)negative;negative

Question

-The figure above shows a nation's consumption function.If disposable income is $2 trillion,then the MPC is ________ and saving is ________.
A)positive;zero 
B)positive;positive 
C)positive;negative 
D)negative;positive 
E)negative;negative

Quizplus · Accepted Answer

The marginal propensity to consume (MPC) is positive as it represents the change in consumption with respect to a change in income. If disposable income is $2 trillion and consumption exceeds this amount, savings would be negative, indicating dissaving.

-The Figure Above Shows a Nation's Consumption Function