FIGURE 21-1 -Refer to Figure 21-1.If disposable income is zero,then A)autonomous desired consumption is 0A. B)autonomous desired consumption is 0Y₁. C)desired consumption must also be zero. D)the level of desired saving will be 0A. E)autonomous desired saving will be 0A.

Question

Quizplus · Accepted Answer

At disposable income zero, there is no income available to spend, therefore the autonomous desired consumption which is the minimum level of consumption that a household would desire at any level of disposable income is also zero. This is represented by point A on the graph.

FIGURE 21-1 -Refer to Figure 21-1.If Disposable Income Is Zero,then