When the Consumption Function Lies Above the 45- Degree Line

question 176

Multiple Choice

When the consumption function lies above the 45- degree line, households

• A) save all of any increase in income.
• B) spend on consumption an increasing percentage of any increase in income.
• C) spend on consumption a decreasing percentage of any increase in income.
• D) are dissaving.

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Definitions:

Shell Model

Model of electron distribution in an atom.

Nitrogen Atom

A chemical element with symbol N and atomic number 7, constituting a key part of living organisms' molecules, such as DNA and proteins.

Atomic Number

The number of protons in the nucleus of an atom, which determines the chemical element's identity, and is symbolized as Z.

Uncharged

A state of a particle or object where it has no electrical charge; neutral.