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

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. when disposable income increases from $0 to $40 billion a. saving increases by $0.10 for each additional dollar of disposable income. b. consumption also increases by $40 billion. c. saving grows at a faster pace than consumption. d. savings equals zero.

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. when disposable income increases from $0 to $40 billion a. saving increases by $0.10 for each additional dollar of disposable income. b. consumption also increases by $40 billion. c. saving grows at a faster pace than consumption. d. savings equals zero.

Answer

Brief Explanations:

Dissaving occurs when consumption exceeds income, which means savings are negative. Looking at the saving - function graph, savings are negative (below the zero - savings line) at income levels less than $40 billion.

Answer:

D. at income levels less than $40 billion.