Question : 21) In the range of disposable income where the consumption : 1227958

21) In the range of disposable income where the consumption function lies above the 45° line,

A) disposable income is negative.

B) saving is negative.

C) saving is positive.

D) disposable income equals planned expenditures.

E) induced consumption is zero.

22) On a graph of the consumption function, where the consumption function crosses the 45 degree line,

A) disposable income is zero.

B) the maximum level of disposable income is earned.

C) there is no saving and no dissaving.

D) there are no tax payments.

E) induced consumption equals zero.

23) On a graph of the consumption function, where the consumption function is below the 45 degree line, there is

A) saving.

B) dissaving.

C) zero disposable income.

D) maximum disposable income.

E) no induced consumption.

24) If your planned consumption expenditure is $600 per month and your disposable income is $500 per month, your

A) autonomous consumption must be zero per month.

B) dissaving is $100 per month.

C) autonomous consumption is -$100 per month.

D) saving is $100 per month.

E) induced consumption is $600.

25) The slope of the consumption function is

A) equal to the MPC and is less than 1.

B) equal to the MPC and is greater than 1.

C) equal to the MPC and is equal to 1.

D) not equal to the MPC and is equal to 1.

E) not equal to the MPC and is less than 1.

26) The above table has data from the nation of Atlantica. Based on these data, autonomous consumption is

A) $1.8 trillion.

B) $2.6 trillion.

C) $3.2 trillion.

D) $4.0 trillion.

E) $5.8 trillion.

27) The above table has data from the nation of Atlantica. Based on these data, when disposal income equals $3.0 trillion,

A) savings equals $4.0 trillion.

B) savings equals $1. trillion.

C) dissavings equals $4.0 trillion.

D) dissavings equals $1.0 trillion.

E) savings equals $3.0 trillion.

28) The above table has data from the nation of Atlantica. Based on these data, at what point does saving equal zero?

A) None, dissavings is present at all of the above points.

B) None, savings is present at all of the above points.

C) Between disposable income of $0.0 and $1.8 trillion

D) Between disposable income of $4.0 trillion and $5.8 trillion

E) Between disposable income of $2.0 trillion and $3.2 trillion

29) The above table has data from the nation of Atlantica. Based on these data, at what point does saving equal zero?

A) None, dissavings occurs at all of the above points.

B) None, savings occurs at all of the above points.

C) Between disposable income of $0.0 and $1.5 trillion

D) Between disposable income of $8.0 trillion and $7.5 trillion

E) At disposable income of $6.0

30) The above table has data from the nation of Atlantica. Based on these data, when disposable income equals 8.0 there is

A) dissavings of $7.5 trillion.

B) savings of $15.5 trillion.

C) dissavings of $15.5 trillion.

D) dissavings of $0.5 trillion.

E) savings of $0.5 trillion.