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

Question

Quizplus · Accepted Answer

When the consumption function is below the 45-degree line, it indicates that consumption is less than income, leading to saving rather than dissaving.

Saving Rather Than Dissaving Occurs at Any Level of Disposable