Consumption expenditures equal disposable income
A) when saving equals disposable income.
B) at every point on the consumption function.
C) at every point on the saving function.
D) at every point on the 45- degree line.

Question

Quizplus · Accepted Answer

Consumption expenditures equal disposable income at every point on the 45-degree line because this line represents all points where consumption equals income, leaving no room for saving or dissaving.

Consumption Expenditures Equal Disposable Income