With consumption expenditure on the vertical axis and disposable income on the horizontal axis, the consumption function intersects the 45-degree line at $8 trillion. This result indicates that
A) autonomous consumption spending is $8 trillion.
B) consumption spending is $8 trillion when disposable income is $8 trillion.
C) consumption spending is less than $8 trillion because taxes must be paid.
D) consumption spending is more than $8 trillion because taxes have been paid.
Correct Answer:
Verified
Q37: Which of the following will NOT shift
Q38: The consumption function shows how much
A) all
Q39: The slope of the consumption function is
A)
Q40: The slope of the consumption function is
A)
Q41: In a diagram with the consumption function,
Q43: In a diagram with the consumption function,
Q44: "Dissaving" occurs when
A) income exceeds consumption expenditure.
B)
Q45: _ consumption expenditure is greater than disposable
Q46: Planned saving equals
A) disposable income minus planned
Q47: Induced consumption is equal to
A) saving when
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