If, for a given disposable income level, the disposable income line lies above the consumption curve, saving:
A)equals consumption.
B)equals disposable income.
C)is less than zero.
D)is equal to zero.
E)is greater than zero.

Question

Quizplus · Accepted Answer

When the disposable income line is above the consumption curve, it indicates that not all disposable income is being used for consumption, meaning some of it is being saved. Therefore, saving is greater than zero.

If, for a Given Disposable Income Level, the Disposable Income