As shown in Exhibit 8-2, the 45 0line represents:
A) autonomous consumption.
B) real consumption spending.
C) real disposable income.
D) all points where real consumption equals real disposable income.
Correct Answer:
Verified
Q45: The sum of the marginal propensity to
Q102: If the marginal propensity to consume =
Q103: As shown in Exhibit 8-2, dissaving occurs:
A)at
Q104: Exhibit 8-2 Consumption function Q105: As shown in Exhibit 8-2, the break-even Q107: If your disposable personal income increases from Q108: The relationship between MPC and MPS is: Q109: The marginal propensity to save (MPS)is computed Q110: Exhibit 8-2 Consumption function Q111: The marginal propensity to save is:![]()
A)1![]()
A)the change
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