Solved

The 45-Degree Line

Question 19

Multiple Choice

The 45-degree line


A) contains only a consumption component.
B) represents both planned consumption and planned investment.
C) shows various combinations where planned consumption equals real disposable income.
D) reflects a decreasing APC as real disposable income rises.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q14: Dissaving occurs when
A)income exceeds consumption.
B)planned savings is

Q15: At a level of real disposable income

Q17: According to Keynes,household planned consumption
A)decreases as disposable

Q18: As real disposable income increases,consumption expenditures
A)stay constant.
B)decrease

Q20: An increase in autonomous consumption means that
A)the

Q21: Figure 9-3 Figure 9-3 </p></div><svg width=

Q23: Figure 9-3 Figure 9-3 </p></div><svg width=

Q24: The consumption curve intersects the 45-degree reference

Q63: When a family's income is low and

Q132: In the Keynesian model, consumption
A)is positively related

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents