If the Consumption Function Is Above the 45-Degree Line

question 111

Multiple Choice

If the consumption function is above the 45-degree line

• A) consumption is less than income and saving is positive.
• B) consumption is less than income and saving is negative.
• C) consumption exceeds income and saving is positive.
• D) consumption exceeds income and saving is negative.

---

Definitions:

Negligent

Failing to exercise the care that a reasonably prudent person would exhibit under similar circumstances.

Foreseen Users

Individuals who are reasonably anticipated to use a product or service, considered by manufacturers and service providers in liability assessments.

Near Privity

A legal doctrine that expands the scope of who can sue for breach of contract to include parties with a close enough relationship to the transaction, though not directly involved.

Negligent

The failure to take reasonable care to avoid causing injury or loss to another person, resulting in legal liability for the resulting damages.