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

Question

Quizplus · Accepted Answer

If the disposable income line lies above the consumption curve, it means that the individual is not consuming all of their disposable income and is saving some of it. Thus, saving is greater than zero.

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