If a household's disposable income increases from $12,000 to $22,000 and at the same time its consumption expenditure increases from $4,000 to $9,000, then

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The slope of the consumption function is the change in consumption over the change in disposable income. Therefore, the slope can be calculated as (9,000-4,000)/(22,000-12,000) = 0.5. The household is not dissaving as its consumption expenditure has increased but its disposable income has also increased. The marginal propensity to consume over this range can be calculated as (9,000-4,000)/(22,000-12,000) = 0.5, which is positive. The marginal propensity to save over this range can be calculated as 1-0.5 = 0.5, which is also positive.

If a Household's Disposable Income Increases from $12,000 to $22,000