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:

Effective Tax Rate

The average rate at which an individual or business is taxed on their total income, after deductions and credits.

GAAP

Generally Accepted Accounting Principles, which are a collection of commonly followed accounting rules and standards for financial reporting.

Quarterly Income

The net income earned by a company during a three-month period, typically reported in quarterly financial statements.

Operating Segments

Components of an enterprise that engage in business activities from which it may earn revenues and incur expenses, whose operating results are regularly reviewed by the entity's chief operating decision maker.