The break-even point on the consumption function represents the point where
A) consumption equals spending.
B) income equals consumption plus spending.
C) consumption is zero.
D) consumption equals income.

Question

Quizplus · Accepted Answer

The break-even point on the consumption function represents the point where consumption equals income. This is because at this point, there is no saving or dis-saving, meaning all of the income is being spent on consumption.

The Break-Even Point on the Consumption Function Represents the Point