FIGURE 21-3 Refer to Figure 21-3

question 42

Multiple Choice

FIGURE 21-3 Refer to Figure 21-3.What does each point along the 45-degree line represent?

• A)combinations of desired aggregate expenditure and actual national income where consumption expenditure equals saving
• B)the equilibrium condition that desired aggregate expenditure equals actual national income
• C)levels of actual national income where desired AE is equal to the sum of desired consumption and desired investment
• D)levels of actual national income that occur when autonomous expenditure is increasing at a constant (linear)rate
• E)levels of actual national income where desired saving is equal to zero

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Definitions:

Export

The act of shipping goods and services from one country to another for sale or trade.

Bulky

Describes items that are large in volume or size compared to their weight, often resulting in challenges with transport, storage, or handling.

Heavy Machineries

Large and heavy vehicles or equipment used for construction, industrial, or agricultural purposes.

Greenfield Operation

A project where a company builds its operations in a foreign country from the ground up, typically in an area where no previous facilities exist.