When Graphing the Consumption Function, We Include a 45-Degree Reference

question 393

Multiple Choice

When graphing the consumption function, we include a 45-degree reference line. What is true at the points at which the consumption function crosses this line?

• A)Planned real saving is zero.
• B)Planned real consumption spending is zero.
• C)Real disposable income is zero.
• D)Real GDP is zero.

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Definitions:

Social Allergy Effect

A phenomenon where repeated exposure to a small irritating behavior in a close relationship leads to an increasingly larger annoyance or distress.

Annoyed

Feeling bothered, irritated, or displeased.

Nail Biting

A common nervous habit where an individual bites their fingernails or the surrounding skin, often a response to stress or anxiety.

Income

Income refers to the money that an individual or business receives in exchange for providing a good or service or through investing capital.