In a Diagram with the Consumption Function, the 45- Degree

question 219

Multiple Choice

In a diagram with the consumption function, the 45- degree line

• A) reflects a decreasing MPC as disposable income rises.
• B) shows where consumption expenditure equals disposable income.
• C) contains only a consumption component.
• D) represents both consumption expenditure and investment.

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Definitions:

Octahedron

A polyhedron with eight faces.

Dodecahedron

A polyhedron with twelve flat faces, each face being a pentagon.

Cubic

A common arrangement of atoms in a mineral or the tendency for a mineral to break along three perpendicular planes.

Perpendicular Directions

directions at right angles (90 degrees) to each other.