In a diagram with the consumption function, the 45- degree line
A) reflects a decreasing MPC as disposable income rises.
B) shows where consumption expenditure equals disposable income.
C) contains only a consumption component.
D) represents both consumption expenditure and investment.
Correct Answer:
Verified
Q40: Autonomous consumption is that portion of consumption
Q41: Planned saving equals
A) zero when disposable income
Q42: In a diagram with the consumption function,
Q43: Consumption expenditures equal disposable income
A) when saving
Q44: "Dissaving" occurs when
A) saving is positive.
B) the
Q46: When disposable income equals $800 billion, planned
Q47: Q48: Autonomous consumption is equal to Q49: In a diagram with the consumption function, Q50: 
A) consumption when
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents