The Consumption Schedule in the Diagram Below Indicates That $\degree$ Line Intersect

question 13

Multiple Choice

The consumption schedule in the diagram below indicates that:

• A)consumers will maximize their satisfaction where the consumption schedule and 45\(\degree\) line intersect.
• B)up to a point consumption exceeds income, but then falls below income.
• C)the MPC falls as income increases.
• D)households consume as much as they earn.