If After Adding Investment (I) to the Consumption (C) Function

question 148

Multiple Choice

If after adding investment (I) to the consumption (C) function, we find that the C+I line is parallel to the consumption function, then:

• A) investment exceeds consumption.
• B) investment is a constant.
• C) investment equals consumption.
• D) investment is less than consumption.

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Definitions:

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Showing a positive or quick reaction to something, especially to changes, suggestions, or stimuli.