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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Definitions:

Person Perception

The process by which individuals form impressions of others based on cues from social interactions and appearances.

Prejudice

A preconceived opinion or judgment, usually negative, towards someone or something without adequate knowledge or reason.

Person Perception

The process by which individuals form impressions of others based on available information and cues.

Positive Feelings

Emotions and sentiments that induce pleasurable experiences or perceptions, often associated with happiness, contentment, and love.