Refer to the information provided in Figure 8.2 below to answer the questions that follow. Figure 8.2
-Refer to Figure 8.2.Jerry's saving equals zero at income level
A)zero.
B)Y1.
C)Y2.
D)Y2 - Y1.

Question

Refer to the information provided in Figure 8.2 below to answer the questions that follow.  Figure 8.2
-Refer to Figure 8.2.Jerry's saving equals zero at income level
A)zero. 
B)Y1. 
C)Y2. 
D)Y2 - Y1.

Quizplus · Accepted Answer

Jerry's saving equals zero at the income level Y1, where his consumption equals his income. At income levels below Y1, his consumption exceeds his income and he dissaves. At income levels above Y1, his income exceeds his consumption and he saves. Therefore, option B is correct.

Refer to the Information Provided in Figure 8