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:

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