In the Standard 45° Line Expenditure Model, the C

question 54

Multiple Choice

In the standard 45° line expenditure model, the C + I line and the C line are parallel because

• A)all I is assumed to be autonomous.
• B)all I is assumed to be induced.
• C)consumption depends on disposable income.
• D)I rises with GDP at the same rate as C.

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Definitions:

Ocean Waves

Rhythmic movements of the water in oceans and seas, often caused by wind or geological factors.

Ultraviolet Radiation

A form of electromagnetic radiation with a wavelength shorter than that of visible light but longer than X-rays, capable of producing sunburn.

Tides

The regular rise and fall of sea levels caused by the gravitational forces exerted by the Moon and the Sun on the Earth's oceans.

Exposed Rock

Areas where bedrock, or the solid rock underlying loose deposits such as soil, is visible on the surface without any vegetation or soil covering it.