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 is below the 45- degree line.
C) the consumption function intersects the saving/income curve.
D) autonomous consumption is positive.

Question

Quizplus · Accepted Answer

Saving occurs when the consumption function is below the 45-degree line, indicating that income exceeds consumption, resulting in positive savings.

Saving Rather Than Dissaving Occurs at Any Level of Disposable