When the C Line Is Above the 45-Degree Line

question 146

Multiple Choice

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.

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Definitions:

Current Assets

Resources anticipated to be turned into cash, sold off, or used up either within a year or over the span of the business's operational cycle, depending on which period extends further.

Research and Development

The process of innovating and improving products or services through scientific investigation, experimentation, and technological advancement.

Operating Expenses

Costs associated with the day-to-day operations of a business that are not directly tied to the production of goods or services.

Current Assets

Resources anticipated to be turned into cash, liquidated, or utilized within a 12-month period or over the length of the business's operational cycle, whichever duration is more extended.