The 45-Degree Line on a Chart Relating Consumption and Income

question 100

Multiple Choice

The 45-degree line on a chart relating consumption and income shows:

• A)all points where the MPC is constant.
• B)all points at which saving and income are equal.
• C)all the points at which consumption and income are equal.
• D)the amounts households will plan to save at each possible level of income.

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Definitions:

Holder

A person who is in possession of a negotiable instrument that is issued or indorsed to that person’s order or to bearer.

Negotiable Instrument

A written document that is signed by the maker or drawer and that contains an unconditional promise or order to pay a certain sum of money on delivery or at a definite time to the bearer or to order.

Holder in Due Course

A legal term describing a party who has acquired a negotiable instrument in good faith and for value, thereby having certain protections against defenses and claims.