Saving is 0 when disposable income isA) 2000.B) 3000.C) 4000.D) 5000.E) 6000.

Question

Fiver Trimble · Accepted Answer

Final Answer : C, Explanation :  The question does not provide any information about the savings rate or any other factors influencing savings except for disposable income. Therefore, we can assume that the relationship between disposable income and savings is linear. Based on the given options, the best choice is C - Saving is 0 when disposable income is 4000, which means that there is no positive or negative savings at this income level. At income levels above 4000, there may be positive savings. At income levels below 4000, there may be negative savings or no savings at all.

Saving is 0 when disposable income is

A) 2000.
B) 3000.
C) 4000.
D) 5000.
E) 6000.

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Learning Objectives

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