The 45-degree reference line indicates all points at which
A) planned real consumption expenditures and planned real saving are equal.
B) planned real saving and planned real investment are equal.
C) planned real consumption expenditures and real GDP are equal.
D) planned real saving and planned real saving are equal.

Question

Quizplus · Accepted Answer

The 45-degree line represents points where planned real consumption expenditures equal real GDP, indicating that all income is spent.

The 45-Degree Reference Line Indicates All Points at Which