The 45-Degree Line on a Graph Relating Consumption and Income

question 164

Multiple Choice

The 45-degree line on a graph relating consumption and income shows

• A) all the points where the MPC is constant.
• B) all the points at which saving and income are equal.
• C) all the points at which consumption and income are equal.
• D) the amounts households will plan to save at each possible level of income.

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Definitions:

Economic Security

The situation where one has reliable financial resources or income to uphold their living standards both today and looking ahead.

Personal Freedom

The rights of individuals to act, speak, or think without hindrance or restraint, except in cases where actions harm others.

Memorial Day Massacre

A violent incident on May 30, 1937, where Chicago police shot and killed ten unarmed demonstrators during a steel strike.