Refer to the information provided in Figure 8.3 below to answer the questions that follow. Figure 8.3
-Refer to Figure 8.3. In this economy, aggregate saving will be zero if income is
A) $100 billion.
B) $200 billion.
C) $300 billion.
D) $400 billion.

Question

Refer to the information provided in Figure 8.3 below to answer the questions that follow.  Figure 8.3
-Refer to Figure 8.3. In this economy, aggregate saving will be zero if income is
A) $100 billion. 
B) $200 billion. 
C) $300 billion. 
D) $400 billion.

Quizplus · Accepted Answer

Aggregate saving is zero when all income is consumed, which occurs at the point where the consumption curve intersects the 45-degree line representing total income. In this scenario, that intersection happens at $200 billion, indicating that at this income level, all income is consumed, and thus, savings are zero.

Refer to the Information Provided in Figure 8