It is false, because in this case, saving will be Negative.
Because when we consume more than our income we have to borrow some money in order to pay full amount of consumption (as it can't be free )resulting in negative savings not positive.

True

Explanation:

When total consumption (C) is greater than national income (Y), i.e., C > Y, saving is positive. This statement is true, and it can be explained by looking at the components of the national income and the relationship between consumption and saving.

Components of National Income:

National income (Y) is composed of various components, including consumption (C), investment (I), government spending (G), and net exports (NX). Therefore, we can express national income as:

Y = C + I + G + NX

Relationship between Consumption and Saving:

Consumption (C) represents the total spending on goods and services by households in an economy. It includes both immediate consumption and saving. Saving (S), on the other hand, represents the portion of income that is not spent on consumption but rather set aside for future use or investment.

S = Y - C

If total consumption (C) is greater than national income (Y), i.e., C > Y, it implies that households are spending more than their total income. In this situation, saving (S) becomes positive because households are saving some of their income to cover the excess of consumption over income.

Example:

For example, let's say the national income (Y) is $10,000, and the total consumption (C) is $12,000. In this case, C > Y, indicating that households are spending $2,000 more than their total income. The saving (S) would be positive and equal to $10,000 - $12,000 = -$2,000. The negative sign indicates that households are dissaving or spending more than their income, and the magnitude represents the amount of saving deficit.

Conclusion:

When total consumption is greater than national income (C > Y), saving is positive. This situation indicates that households are spending more than their income, and they need to dip into their savings or borrow to cover the excess consumption. Consequently, the saving rate decreases, and there is a negative impact on the overall savings in the economy.