In the Consumption Function Model, the 45-Degree Line Represents Where

question 15

Multiple Choice

In the consumption function model, the 45-degree line represents where

• A) the real disposable income is equal to zero.
• B) planned real saving is equal to zero.
• C) planned real consumption spending is equal to zero.
• D) planned real saving is greater than actual real savings.

---

Definitions:

Assets

Resources owned or controlled by a business or an individual that are expected to produce future economic value.

Liabilities

Financial obligations or debts that a company owes to others, which must be settled over time through the transfer of economic benefits.

Fees Earned

Income earned from providing services before receiving payment.

Rent Revenue

Income earned from leasing out property or space to tenants.