At the Point at Which Planned Real Consumption Spending Is

question 381

Multiple Choice

At the point at which planned real consumption spending is equal to real disposable income

• A) the consumption function is above the 45-degree line.
• B) the consumption function is below the 45-degree line.
• C) the consumption function intersects the 45-degree line.
• D) the consumption function intersects the savings function.

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Definitions:

Reflexive Responding

A type of reaction in which an individual automatically responds to a stimulus without conscious thought.

Motor Development

The progression of muscular coordination and the ability to move and control the body.

Nature

The inherent qualities or characteristics of something, or the physical world collectively including plants, animals, landscapes, and other features and products of the earth.

Nurture

The influence of environmental factors, such as upbringing and life experiences, on an individual's development and personality.