On a graph of the consumption function, where the consumption function is below the 45 degree line, there is
A) saving.
B) dissaving.
C) zero disposable income.
D) maximum disposable income.
E) no induced consumption.

Question

Quizplus · Accepted Answer

When the consumption function is below the 45-degree line, it indicates that consumption is less than income, leading to saving.

On a Graph of the Consumption Function, Where the Consumption