In the figure above, when disposable income equals $20 trillion,
A) consumption expenditure is less than disposable income but it is not possible to determine if consumers are saving or dissaving.
B) consumption expenditure is greater than disposable income, so consumers are saving.
C) consumption expenditure is greater than disposable income, so consumers are dissaving.
D) consumption expenditure is less than disposable income, so consumers are dissaving.
E) consumption expenditure is less than disposable income, so consumers are saving.
E
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Explain what is meant by "asymmetric information." Identify and explain the two basic types of problems that arise when there is asymmetric information
Compared to the Keynesian transmission mechanism, the monetarist transmission mechanism is
A) indirect and long. B) direct and long. C) direct and short. D) indirect and short.
Economists' suggestions for social policy are determined by subjective value judgments as well as by objective economic analyses.
Answer the following statement true (T) or false (F)
Exhibit 6-3 A marginal product curve
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As shown in Exhibit 6-3, the law of diminishing returns applies where there are:
A. more than 5 workers per day. B. fewer than 2 workers per day. C. fewer than 5 workers per day. D. between 2 and 5 workers per day.