When Graphing the Consumption Function, What Purpose Is Served by the 45-Degree

question 106

Multiple Choice

When graphing the consumption function, what purpose is served by the 45-degree line?

• A) It identifies all the points at which saving and consumption spending are equal.
• B) It identifies all the points at which real disposable income and planned real consumption spending are equal.
• C) It identifies all the points at which real planned investment expenditure and real autonomous consumption spending are equal.
• D) It identifies all the points where real dissaving and saving are equal.

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Definitions:

Humanists

Individuals who emphasize the value and goodness of human beings, preferring critical thinking and evidence over established doctrine or faith.

Cognitive-Behavioral

A treatment method that targets harmful behaviors and thought processes by combining cognitive and behavioral strategies.

Clinical Psychologists

Mental health professionals who assess, diagnose, and treat psychological disorders and behavioral problems through counseling, psychotherapy, and intervention.

Prochaska & Norcross

Researchers known for developing the Transtheoretical Model of behavior change, which describes how individuals progress through stages of change when modifying behavior.