Use the Figure Below to Answer the Following Questions

question 118

Multiple Choice

Use the figure below to answer the following questions.

Figure 27.1.1
This figure describes the relationship between consumption expenditure and disposable income for an economy.
-Refer to Figure 27.1.1. When disposable income is $200 billion,

• A)saving is equal to line segment AD.
• B)households are consuming less than $200 billion.
• C)businesses are spending more than households because the consumption function lies above the 45° line.
• D)households are dissaving an amount equal to line segment AB.
• E)households are saving an amount equal to line segment AB.

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Definitions:

Ruler

An individual who holds significant political power or authority over a country, state, or territory; often a monarch, emperor, or president.

Enlightenment

A cultural and intellectual movement of the 17th and 18th centuries emphasizing reason, individualism, and skepticism towards traditional doctrines.

Political Order

The set of structures, institutions, and processes that shape how power is exercised, how decisions are made, and how citizens interact with the state.

Divinely Sanctioned

Justified, supported, or approved by a deity or religious authority, often used to legitimize actions, leaders, or laws.