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
You might also like to view...
In absolute terms and relative to other countries, what happened to U.S. growth rates in productivity as measured by output per paid hour in the late 1960s and 1970s?
(a) They increased. (b) They stayed the same. (c) They fell. (d) They fell early on and then increased past their previous levels.
If consumers view cappuccinos and lattés as substitutes, what would happen to the equilibrium price and quantity of lattés if the price of cappuccinos rises?
a. Both the equilibrium price and quantity would increase. b. Both the equilibrium price and quantity would decrease. c. The equilibrium price would increase, and the equilibrium quantity would decrease. d. The equilibrium price would decrease, and the equilibrium quantity would increase.