-In the above figure, consumption and disposable income are equal at
A) any point along the consumption function.
B) a saving level of $1 trillion and disposable income level of $4 trillion.
C) a disposable income level of $0.
D) a disposable income level of $2 trillion.
Correct Answer:
Verified
Q18: A consumption function shows a
A) negative (inverse)
Q19: Disposable income is equal to
A) consumption expenditure
Q20: If firms set prices and then keep
Q21: A movement along the consumption function is
Q22: As disposable income increases, consumption expenditures
A) increase
Q24: A movement along the consumption function to
Q25: The graph of the consumption function has
Q26: _ consumption is consumption that will occur
Q27: Autonomous consumption is that portion of consumption
Q28: An increase in expected future income
A) decreases
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