(trillions of 2012 dollars) 25 45 line 20 15 Consumpeion funccion 10. 15 Disposable income (erillions of 2012 dollars) 10 20 In the figure above, AE is labeled as the "consumption function." When (disposable) income equals $10 trillion, O a. consumption expenditure is less than disposable income, so consumers are dissaving. O b. consumption expenditure is greater than disposable income, so consumers are saving. O c. consumption expenditure is less than disposable income, so consumers are saving. O d. consumption expenditure is greater than disposable income but it is not possible to determine if consumers are saving or dissaving. O e. consumption expenditure is greater than disposable income, so consumers are dissaving.

(trillions of 2012 dollars) 25 45 line 20 15 Consumpeion funccion 10. 15 Disposable income (erillions of 2012 dollars) 10 20 In the figure above, AE is labeled as the "consumption function." When (disposable) income equals $10 trillion, O a. consumption expenditure is less than disposable income, so consumers are dissaving. O b. consumption expenditure is greater than disposable income, so consumers are saving. O c. consumption expenditure is less than disposable income, so consumers are saving. O d. consumption expenditure is greater than disposable income but it is not possible to determine if consumers are saving or dissaving. O e. consumption expenditure is greater than disposable income, so consumers are dissaving.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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