When the consumption function lies below the 45° line, households
A) are dissaving.
B) spend all of any increase in disposable income.
C) consume more than their disposable income.
D) save all of any increase in disposable income.
E) are saving some portion of their disposable income.
Correct Answer:
Verified
Q2: Use the figure below to answer the
Q3: Use the figure below to answer the
Q4: Dissaving occurs when a household
A)consumes more than
Q5: The marginal propensity to save is calculated
Q6: Disposable income is
A)used for consumption only.
B)aggregate income
Q7: Use the figure below to answer the
Q8: If the marginal propensity to consume is
Q9: The marginal propensity to consume is calculated
Q10: The marginal propensity to consume is the
A)fraction
Q11: A household
A)consumes, saves, or pays taxes out
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