Identify, what does the shaded area (ΔEFG), in the given figure indicate ? (Consumption on Y-axis, Income on X-axis; 45° line Y and consumption function C = c̄ + bY intersecting at E, with points F and G to the right forming the shaded area ΔEFG.) I. Consumption Income II. Saving = Zero (0) III. Consumption

Question

Identify, what does the shaded area (ΔEFG), in the given figure indicate ? (Consumption on Y-axis, Income on X-axis; 45° line Y and consumption function C = c̄ + bY intersecting at E, with points F and G to the right forming the shaded area ΔEFG.) I. Consumption > Income II. Saving = Zero (0) III. Consumption < Income IV. Saving < Zero (0) Alternatives : For Visually Impaired Candidates : Marginal Propensity to Save (MPS) is the slope of ______. (Choose the correct alternative.) (A) Consumption function (B) Cost function (C) Saving function (D) Investment

Accepted Answer

(B) II and III