If the Consumption Function Coincides with the 45-Degree Line,then We

question 115

Multiple Choice

If the consumption function coincides with the 45-degree line,then we know that

• A)desired consumption is constant at all levels of disposable income.
• B)the marginal propensity to consume is less than one.
• C)the marginal propensity to consume is greater than one.
• D)desired consumption equals desired saving at all levels of disposable income.
• E)desired saving is zero at all levels of disposable income.

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