The 45-Degree Line on a Graph Relating Consumption and Income

question 164

Multiple Choice

The 45-degree line on a graph relating consumption and income shows

• A) all the points where the MPC is constant.
• B) all the points at which saving and income are equal.
• C) all the points at which consumption and income are equal.
• D) the amounts households will plan to save at each possible level of income.

---

Definitions:

Secondary Data

Information that has been previously collected for another purpose but can be used for the analysis of a new question or issue.

Census Bureau

A national agency responsible for collecting, analyzing, and publishing statistical data about the population, economy, and society of a country.

Marketing Research Study

A systematic approach to collecting, analyzing, and interpreting data about a market, competition, and consumer preferences.

Internal Secondary Data

Data that has been collected within an organization for purposes other than the current research project but can be repurposed for new analysis.