Use the Figure Below to Answer the Following Questions

question 25

Multiple Choice

Use the figure below to answer the following questions.
Figure 11.1.1
This figure describes the relationship between consumption expenditure and disposable income for an economy.
-Refer to Figure 11.1.1.When disposable income is $200 billion,

• A)households are saving an amount equal to line segment AB.
• B)households are dissaving an amount equal to line segment AB.
• C)households are consuming less than $200 billion.
• D)businesses are spending more than households because the consumption function lies above the 45° line.
• E)saving is greater than consumption expenditure.

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