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:

Environment

The surroundings or conditions in which a person, plant, or animal lives or operates, including both natural and built elements.

Continuous

Uninterrupted in time, sequence, substance, or extent.

Discontinuous

Marked by interruptions or breaks; not continuous or steady.

Contextual

Relating to or depending on the context or surrounding circumstances to understand its full meaning.