Along the portion of the consumption function that lies above the 45-degree line, saving is
A) positive.
B) negative.
C) equal to zero.
D) equal to consumption.

Question

Quizplus · Accepted Answer

Along the portion of the consumption function that lies above the 45-degree line, individuals are consuming more than their current income, which means they are dissaving, or in other words, their saving is negative.

Along the Portion of the Consumption Function That Lies Above