In a diagram with the consumption function, the shows all points where disposable income equals consumption expenditures.
A) 45-degree line
B) consumption function
C) aggregate demand curve
D) saving function

Question

Quizplus · Accepted Answer

The 45-degree line represents all points where disposable income equals consumption expenditures because at these points, the value on the x-axis (disposable income) is equal to the value on the y-axis (consumption expenditures).

In a Diagram with the Consumption Function, the Shows All