Identify the Correct Statement with Respect to Consumption and Saving

question 89

Multiple Choice

Identify the correct statement with respect to consumption and saving function.

• A)Both the consumption function and the saving function have negative slopes.
• B)As disposable income declines, consumption and saving increase.
• C)The consumption function has a negative slope while the saving function has a positive slope.
• D)As disposable income rises, consumption and saving increase.
• E)The consumption function has a positive slope while the saving function has a negative slope.

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Definitions:

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