In the above figure, saving will equal zero when real disposable income equals
A) 0.
B) 60.
C) 600.
D) 500.

Question

Quizplus · Accepted Answer

Savings equal zero when all of the disposable income is consumed, which occurs at the point where the consumption curve intersects the 45-degree line representing income. This intersection represents the break-even point where consumption equals income, and no savings are made. Without the figure, the most common economic principle is that savings equal zero at the level of income where consumers spend all their income and save none, typically represented by the autonomous level of consumption in basic economic models. However, without specific details or a visual representation, the correct answer is inferred based on standard economic principles rather than the specific details of a figure.

In the Above Figure, Saving Will Equal Zero When Real