Along the 45° Reference Line

question 23

Multiple Choice

Along the 45° reference line

• A) consumption expenditures equal saving.
• B) the relationship between consumption and income is represented.
• C) the average propensity to consume is represented.
• D) planned real expenditures equal real disposable income.

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Definitions:

Derivative Suit

A lawsuit brought by a shareholder on behalf of a corporation against a third party, often an insider of the corporation, when the corporation fails to take action against the wrongdoer.

Ultra Vires

Acts performed beyond the scope of the legal power or authority granted to a person or corporation.

Apparent Authority

A situation in contract law where a reasonable person would understand that an agent had authority to act, even if the agent did not have actual authority from the principal.

Ratification

Officially confirming and giving legal validity to an agreement or treaty through formal approval.