-The figure above shows a nation's consumption function.If disposable income is $4 trillion,then the MPC is ________ and saving is ________.
A)positive;zero
B)negative;positive
C)negative;negative
D)positive;positive
E)positive;negative

Question

-The figure above shows a nation's consumption function.If disposable income is $4 trillion,then the MPC is ________ and saving is ________.
A)positive;zero 
B)negative;positive 
C)negative;negative 
D)positive;positive 
E)positive;negative

Quizplus · Accepted Answer

The MPC is the slope of the consumption function, which is positive. Saving is the vertical distance between the consumption function and the 45-degree line, which is also positive.

-The Figure Above Shows a Nation's Consumption Function