Asked by
Sophia Moness
on Oct 13, 2024
Verified
When the C line is above the 45-degree line,
A) there is dissaving and consumption is greater than disposable income.
B) there is dissaving and consumption is less than disposable income.
C) there is positive saving and consumption is greater than disposable income.
D) there is positive saving and consumption is less than disposable income.
45-Degree Line
In economics, a graphical representation where all points on the line represent where the value of the goods and services produced equals total spending.
Dissaving
The consumption of funds beyond current income, often leading to the depletion of wealth or the incurrence of debt.
- Understand the correlation among disposable income, consumption, and the act of saving.
- Examine the importance of dissaving and its potential impacts.
Verified Answer
LM
Learning Objectives
- Understand the correlation among disposable income, consumption, and the act of saving.
- Examine the importance of dissaving and its potential impacts.