"Dissaving" occurs when
A) saving is positive.
B) the consumption function is below the 45- degree line drawn from the origin.
C) income exceeds consumption expenditure.
D) saving is negative.
Correct Answer:
Verified
Q39: As disposable income increases, consumption expenditures
A) increase
Q40: Autonomous consumption is that portion of consumption
Q41: Planned saving equals
A) zero when disposable income
Q42: In a diagram with the consumption function,
Q43: Consumption expenditures equal disposable income
A) when saving
Q45: In a diagram with the consumption function,
Q46: When disposable income equals $800 billion, planned
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