Where the Consumption Function Crosses the 45-Degree Line

question 108

Multiple Choice

Where the consumption function crosses the 45-degree line,

• A)savings will be negative.
• B)consumption will equal only autonomous consumption.
• C)the marginal propensity to consume is 0.5.
• D)savings will be zero.

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Definitions:

Receiving Report

A document that records details about goods received by an entity, typically including descriptions, quantities, and condition of goods.

Quantities

Refers to the amount or number of a material or immaterial item.

Outstanding Checks

Checks that have been issued and recorded but not yet cashed or cleared by the bank.

Petty Cash Fund

A small amount of cash kept on hand for making minor, immediate purchases or reimbursements in a business.