In the Keynesian Aggregate Expenditure Model, the 45-Degree Line Indicates

question 94

Multiple Choice

In the Keynesian aggregate expenditure model, the 45-degree line indicates:

• A)amounts households plan to spend at each possible level of income.
• B)amounts households plan to save at each possible level of income.
• C)all income levels at which the planned spending of decision makers equals total output.
• D)all income levels at which the marginal propensity to consume is one.