Statement I.When disposable income is zero,autonomous consumption equals total consumption.
Statement II.When consumption equals disposable income,saving is zero.

Question

Quizplus · Accepted Answer

Statement I is true because autonomous consumption refers to the minimum amount of consumption that must be maintained even when disposable income is zero. Therefore, if disposable income is zero, it is assumed that total consumption is equal to autonomous consumption. 
Statement II is also true because disposable income is the amount of income that is available to be either consumed or saved. If consumption equals disposable income, there is no income left over to save, so saving is zero.