At the Point at Which the Consumption Function Intersects the 45

question 343

Multiple Choice

At the point at which the consumption function intersects the 45 degree reference line

• A) planned real consumption equals real disposable income.
• B) equilibrium output is supply determined equilibrium output is determined by both.
• C) planned real saving equals real disposable income.
• D) planned real consumption of real disposable income equals zero.

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Definitions:

Control Group

A group in an experiment that does not receive the treatment being tested and is used as a benchmark to measure how the other tested groups do.

Degrees Of Freedom

The number of independent values or quantities which can be assigned to a statistical distribution, crucial for estimating population parameters.

Matched Pairs Experiment

An experimental design where subjects are paired based on certain characteristics, and then one in each pair is randomly assigned to the treatment group, while the other receives the control.

T-Test

A statistical test used to determine if there is a significant difference between the means of two groups, which may be related in certain features.