Dissaving occurs when the consumption function lies belowthe 45-degree line.

Name: Dissaving occurs when the consumption function lies belowthe 45-degree line.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Dissaving occurs when the consumption function lies above the 45-degree line, indicating that people are consuming more than their income. When the consumption function lies below the 45-degree line, it indicates that people are saving more than they consume, which is not considered dissaving.

Dissaving Occurs When the Consumption Function Lies Belowthe 45-Degree Line