Saving is positive for all levels of disposable income
A)above zero.
B)above where the consumption line intersects the 45-degree line.
C)below where the consumption line intersects the 45-degree line.
D)above where the consumption function intersects the vertical axis.
E)above autonomous consumption.

Question

Quizplus · Accepted Answer

Savings become positive when disposable income is above the level where the consumption line intersects the 45-degree line, indicating that consumption is less than income, allowing for positive savings.

Saving Is Positive for All Levels of Disposable Income