the saving function of an economy is shown. dissaving occurs a. when the mpc > mps. b. at an income level of…

the saving function of an economy is shown. dissaving occurs a. when the mpc > mps. b. at an income level of $40 billion. c. at income levels above $40 billion. d. at income levels less than $40 billion.

the saving function of an economy is shown. dissaving occurs a. when the mpc > mps. b. at an income level of $40 billion. c. at income levels above $40 billion. d. at income levels less than $40 billion.

Answer

Brief Explanations:

Dissaving occurs when consumption exceeds income. Looking at the saving - function graph, saving is negative (dissaving) at income levels less than the break - even point. Here, the break - even point (where saving = 0) seems to be at an income of $40 billion. So dissaving occurs at income levels less than $40 billion.

Answer:

D. at income levels less than $40 billion.