Consider the Aggregate Consumption Function in a Simple Macro Model

Multiple Choice

Consider the aggregate consumption function in a simple macro model with no taxes. At the level of national income where APC = 1, the nation's households are

A) saving a portion of their income, but saving is less than consumption.
B) saving all of their disposable income.
C) consuming all of their disposable income.
D) allocating their income equally between saving and consumption.
E) spending more than their current income.