Identify, what does the shaded area (AEFG), in the given figure indicate?
Komal Kohli March 18, 2024
Identify, what does the shaded area (AEFG), in the given figure indicate?
I. Consumption > Income
II. Saving = Zero (0)
III. Consumption < Income
IV. Saving < Zero (0)
Alternatives:
(A) I and Il
(B) II and III
(C) III and N
(D) I and IV
Ans. The shaded area (AEFG) in the given figure indicates that consumption is exceeding income, which implies that savings are negative (i.e., saving < 0). So, the correct alternative is: (D) I and IV
