When the consumption function lies above the 45-degree line, households
A) spend on consumption an increasing percentage of any increase in income.
B) spend on consumption a decreasing percentage of any increase in income.
C) are dissaving.
D) save all of any increase in income.
Correct Answer:
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Q48: Consumption expenditures equal disposable income
A) at every
Q49: Q50: Q51: If the consumption function lies below the Q52: When disposable income equals consumption expenditure, then Q54: As real disposable income increases, consumption expenditure Unlock this Answer For Free Now! View this answer and more for free by performing one of the following actions Scan the QR code to install the App and get 2 free unlocks Unlock quizzes for free by uploading documents
A)
