According to figure above A Saving is zero at an income leve
According to figure above:
A) Saving is zero at an income level of $30
B) Consumption is $10 when income is zero
C) The APC is less than 1 at income levels above $30
D) All of the above are true
Solution
Answer B.
Y=C+I , At zero level of income, consumption will always be there & one has to spend a minimum. Over here a minimum is $10, which can be spent at zero level of income.Rest, both of the solutions holds untrue & false.
