Multiple Choice

-The relationship in the above figure suggests that when the interest rate is 5 percent,
A) a decrease in income will be associated with a decrease in expenditures.
B) a decrease in income will be associated with an increase in expenditures.
C) an increase in income will be associated with a decrease in expenditures.
D) There is no relationship between expenditures and income.
Correct Answer:
Verified
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