-In the figure above, when disposable income equals $4 trillion,
A) consumption expenditure is greater than disposable income, so consumers are dissaving.
B) consumption expenditure is less than disposable income, so consumers are dissaving.
C) consumption expenditure is greater than disposable income, so consumers are saving.
D) consumption expenditure is less than disposable income, so consumers are saving.
E) consumption expenditure is greater than disposable income but it is not possible to determine if consumers are saving or dissaving.

Question

-In the figure above, when disposable income equals $4 trillion,
A) consumption expenditure is greater than disposable income, so consumers are dissaving. 
B) consumption expenditure is less than disposable income, so consumers are dissaving. 
C) consumption expenditure is greater than disposable income, so consumers are saving. 
D) consumption expenditure is less than disposable income, so consumers are saving. 
E) consumption expenditure is greater than disposable income but it is not possible to determine if consumers are saving or dissaving.

Quizplus · Accepted Answer

When consumption expenditure exceeds disposable income, consumers are dissaving, meaning they are spending more than they earn.

-In the Figure Above, When Disposable Income Equals $4 Trillion