When the Consumption Function Lies Below the 45° Line, Households

question 140

Multiple Choice

When the consumption function lies below the 45° line, households

• A)spend all of any increase in disposable income.
• B)consume more than their disposable income.
• C)are saving some portion of their disposable income.
• D)save all of any increase in disposable income.
• E)are dissaving.

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Definitions:

Fluid Type

Fluid type refers to the classification of fluids based on their physical properties, composition, and behavior under different conditions, relevant in both biological and engineering contexts.

Shape

The outer shape, edges, or silhouette of an object or figure.

Synchondrosis

A type of cartilaginous joint where bones are joined by hyaline cartilage, allowing for growth or flexibility.

Hyaline Cartilage

A type of strong but pliable cartilage found in areas such as the nose, trachea, and at the ends of long bones where it reduces friction and absorbs shock.