Question 38 2.5 pts Identify the correct statement Autonomous consumption equals saving when disposable income is equal to zero. Saving is equal to consumption when autonomous consumption is zero The savings function always has a positive intercept when autonomous consumption is positive The consumption and saving function intersect each other when disposable income is zero. Autonomous consumption is positive even when disposable income is zero. Question 39 2.5 pts The sum of the MPC and the MPS is always; greater than 1 O less than 1 O equal to 1 O equal to zero O between 0 and 1! Question 40 2.5 pts Which of the following statements is true of government spending? An increase in government spending raises the equilibrium level of income by a multiple of the original spending increase. Government spending is a part of monetary policy, not fiscal policy. A decline in government spending brings about an expansion in the economy. An increase in government spending increases the recessionary gap in the economy. An increase in government spending shifts the aggregate demand curve downward by a fraction of the rise in goverment spending