Using the Disposable Income Level at Which the Consumption Function

question 15

Multiple Choice

Using the disposable income level at which the consumption function intersects the 45-degree line,we can identify

• A)Full employment at the intersection point.
• B)An inflationary gap to the right of the intersection point.
• C)Dissaving to the left of the intersection point.
• D)Dissaving to the right of the intersection point.