Saving rather than dissaving occurs at any level of disposable income at which
A. the consumption function is above the 45-degree line.
B. the consumption function intersects the saving/income curve.
C. the consumption function is below the 45-degree line.
D. autonomous consumption is positive.
Answer:C
Saving rather than dissaving occurs at any level of disposable income at which
A. the consumption function is above the 45-degree line. B. the consumption function intersects the saving/income curve. C. the consumption function is below the 45-degree line. D. autonomous consumption is positive.