The Table Given Below Reports the Consumption Expenditure of a Nation

question 18

Multiple Choice

The table given below reports the consumption expenditure of a nation at different levels of disposable income.
Table 9.1
$\begin{array}{|c|c|}\hline \text { Disposable Income }\left(Y_{2}\right) & \text { Consumption }(C) \\\hline \$ {0}& \$ 4,500 \\\hline \$ 10,000 & \$ 12,000 \\\hline \$ 15,000 & \$ 15,750 \\\hline \$ 25,000 & \$ 23,250 \\\hline \$ 30,000 & \$ 27,000 \\\hline \$ 35,000 & \$ 30,750 \\\hline \$ 40,000 & \$ 34,500 \\\hline \$ 50,000 & \$ 42,000 \\\hline\end{array}$
-Refer to Table 9.1. The income level of $18,000 coincides with:

• A) the origin of the graph.
• B) the point where the consumption function touches the vertical axis.
• C) the point where the MPC equals 1.00.
• D) the point where the APC equals 1.00.
• E) the point where the consumption function crosses the 45-degree line.

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