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

question 73

Multiple Choice

In a diagram with the consumption function, the 45-degree line indicates all points where

• A) consumption expenditures and saving are equal.
• B) saving and investment are equal.
• C) consumption expenditures and disposable income are equal.
• D) saving and disposable income are equal.

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Definitions:

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