For levels of disposable income to the left of the point where consumption intersects the 45-degree line

A) Saving is negative.
B) Disposable income exceeds consumption.
C) Saving equals disposable income.
D) Consumption equals disposable income.
E) Saving equals consumption.

45-Degree Line

In economics, a line on a graph that shows where the value of the goods and services produced in an economy equals the total income earned in that same economy.

Disposable Income

Income that is available for saving and spending after income taxes have been deducted.

Consumption

The act of using up goods and services by households or individuals, leading to a decrease in their quantity.