Identify the Correct Statement

question 75

Multiple Choice

Identify the correct statement.

• A)Autonomous consumption equals saving when disposable income is equal to zero.
• B)Saving is equal to consumption when autonomous consumption is zero.
• C)The savings function always has a positive intercept when autonomous consumption is positive.
• D)The consumption and saving function intersect each other when disposable income is zero.
• E)Autonomous consumption is positive even when disposable income is zero.

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Definitions:

Self-sufficiency

The ability of a country, region, or individual to produce everything they need without relying on external sources.

Export-import Sector

The export-import sector consists of the trade activities in which goods and services are sold to a foreign country (export) and bought from a foreign country (import), contributing significantly to a nation's economy.

Joseph Stiglitz

An American economist and a professor at Columbia University, known for his work on the theory of markets with asymmetric information and his critical view on global economic policies.

IMF

The International Monetary Fund, an international organization that aims to foster global monetary cooperation and financial stability, facilitate international trade, and reduce poverty.