If the consumption function starts from the y-axis (not the origin), it means at zero income consumption is still positive. This positive value represents autonomous consumption, financed by past savings or borrowings.
When consumption function starts from y axis, it indicates that ?
CUET UG 2022 — Economics Macro
2022mcqeasy
When consumption function starts from y axis, it indicates that ?
Official previous-year question
Verified 13 Jul 2026.
Options
- A
Consumption is zero when income is zero
- B
Consumption is positive when income is zero
- C
Saving is negative when income is positive
- D
Saving is positive when income is zero
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