Use the Following to Answer Questions

question 172

Multiple Choice

Use the following to answer questions .
Exhibit: Consumption and Disposable Personal Income
-(Exhibit: Consumption and Disposable Personal Income) Assuming that the relationship between consumption and disposable personal income remains linear throughout its entire range, if disposable personal income were zero, what would personal saving be?

• A) −$200 billion
• B) $0
• C) $200 billion
• D) $400 billion

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Definitions:

Prohibition

A legal restriction that prevents certain actions or behaviors, often associated with the control of drugs or alcohol.

Rules of Natural Justice

Fundamental procedural legal principles that ensure fairness in decision-making processes, including the right to a fair hearing and the prohibition of bias.

Requirements

Conditions or specifications that must be met or complied with.

Fair Hearing

A hearing conducted in accordance with the rules of procedural fairness; the person affected negatively by a decision has the right to receive proper and timely notice of all the matters affecting the case and be given a chance to put forward his side.