The vertical distance between the 45- degree line and the consumption line represents
A)saving or dissaving.
B)investment.
C)total consumption expenditure.
D)the difference between consumption expenditure and investment.

Question

Quizplus · Accepted Answer

The vertical distance between the 45-degree line and the consumption line represents saving or dissaving, as it shows the difference between total income and consumption.

The Vertical Distance Between the 45- Degree Line and the Consumption