-According to the above figure, at an income level of Y₁,
A)the economy saves an amount equal to BD.
B)the marginal propensity to save is falling.
C)the average propensity to save is greater than one.
D)the economy dissaves an amount equal to BD.

Question

-According to the above figure, at an income level of Y₁,
A)the economy saves an amount equal to BD. 
B)the marginal propensity to save is falling. 
C)the average propensity to save is greater than one. 
D)the economy dissaves an amount equal to BD.

Quizplus · Accepted Answer

At income level Y₁, the economy dissaves an amount equal to BD, indicating that consumption exceeds income.

-According to the Above Figure, at an Income Level of Y₁