The 45-Degree Line in the Keynesian Model Represents a Set

question 53

Multiple Choice

The 45-degree line in the Keynesian model represents a set of points where _____ equals _____.

• A) disposable income; saving
• B) disposable income; consumption
• C) saving; consumption
• D) saving; investment

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Definitions:

Quick Ratio

A liquidity ratio that measures a company's ability to meet its short-term obligations with its most liquid assets, excluding inventory.

Assets

Resources owned or controlled by a business or individual, which are expected to produce future economic benefits.

Liabilities

Financial obligations or debts owed by a business or individual to others, which must be paid in the future.

Journalize

The act of recording business transactions in the chronological order of occurrence within the accounting journals.