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Identify the Correct Statement with Respect to Consumption and Saving

Question 3

Multiple Choice

Identify the correct statement with respect to consumption and saving function.


A) Both the consumption function and the saving function have negative slopes.
B) As disposable income declines, consumption and saving increase.
C) The consumption function has a negative slope while the saving function has a positive slope.
D) As disposable income rises, consumption and saving increases.
E) The consumption function has a positive slope while the saving function has a negative slope.

Correct Answer:

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