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Exhibit 8-5 Consumption function 4 Real consumption 3 (trillions of 2 year) dollars per Consumption Function 1 45 0 1 2. 3 4 Real disposable

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Exhibit 8-5 Consumption function 4 Real consumption 3 (trillions of 2 year) dollars per Consumption Function 1 45" 0 1 2. 3 4 Real disposable income (trillions of dollars per year) As shown in Exhibit 8-5, saving occurs: O at 0 disposable income. O between $0 and $2 trillion disposable income. O at $2 trillion disposable income. O at a disposable income greater than $2 trillion

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