Refer to the saving schedule above. Dissaving occurs when disposable income is:
A) Equal to level 2
B) Less than level 2
C) Greater than level 2
D) Equal to level 3

Question

Refer to the saving schedule above. Dissaving occurs when disposable income is:
A) Equal to level 2 
B) Less than level 2 
C) Greater than level 2 
D) Equal to level 3

Quizplus · Accepted Answer

Dissaving occurs when the level of consumption exceeds disposable income. In the given saving schedule, level 2 corresponds to zero saving and any value less than level 2 would indicate dissaving. Therefore, when disposable income is less than level 2, dissaving occurs.

Refer to the Saving Schedule Above