Where the Consumption Function Crosses the 45° Line

question 57

Multiple Choice

Where the consumption function crosses the 45° line

• A) saving is positive.
• B) saving is negative.
• C) consumption expenditure equals disposable income.
• D) consumption expenditure equals saving.

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Definitions:

Stock Bonus Plan

A form of compensation given to employees, offering them shares in the company as part of their remuneration package.

Stock Gainsharing Plan

A compensation program where employees receive benefits based on the company's stock performance, usually in addition to their regular salaries.

Guaranteed Pay

Compensation that an employee can count on receiving, typically a fixed annual amount, regardless of performance or company profits.

Salary and Commission

A compensation structure that combines a fixed salary with performance-based commissions, often used in sales jobs.