In the Standard 45-Degree Line Expenditure Model, the C

question 164

Multiple Choice

In the standard 45-degree 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.