If the Consumption Function Lies Below the 45-Degree Line, Then

question 107

Multiple Choice

If the consumption function lies below the 45-degree line, then saving at these levels of disposable income will

• A) be positive.
• B) be negative.
• C) equal zero.
• D) be some amount that cannot be determined without additional information.

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Definitions:

Shield

A large, flat area of ancient, hard rock on the Earth's surface, often found in continental interiors and known for its geological stability.

Viscous Magma

Magma that does not flow easily.

Abundant Silica

The presence of a high concentration of silicon dioxide in rocks or magma, which affects their viscosity and melting point.

Less Viscous

Refers to a substance's decreased resistance to flow, implying it moves more freely compared to more viscous materials.