Which of the following is correct? When the consumption function lies above the 45-degree line, households (a) spend on consumption a decreasing percentage of any increase in income. (b) save all of any increase in income. (c) are dissaving. (d) spend on consumption an increasing percentage of any increase in income.

Which of the following is correct? When the consumption function lies above the 45-degree line, households (a) spend on consumption a decreasing percentage of any increase in income. (b) save all of any increase in income. (c) are dissaving. (d) spend on consumption an increasing percentage of any increase in income.

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter9: Aggregate Expenditures

Section: Chapter Questions

Problem 7E

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