The Figure Given Below Shows the Consumption Function of a Household

question 26

Multiple Choice

The figure given below shows the consumption function of a household. Figure 9.2 In Figure 9.2, the line segment AD represents:

• A)autonomous consumption.
• B)the maximum amount of saving.
• C)negative consumption.
• D)zero consumption.
• E)autonomous income.

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Definitions:

War of Spanish Succession

The War of Spanish Succession (1701-1714) was a major European conflict triggered by the death of the childless Charles II of Spain, leading to a power struggle between several European powers to control the Spanish throne.

Gibraltar

A British Overseas Territory located at the southern tip of the Iberian Peninsula at the entrance of the Mediterranean Sea, known for its strategic military significance.

Strategically Important

Describes a location, asset, or aspect that holds significant value or advantage in terms of military, economic, or political strategy.

Treaty of Utrecht

A series of agreements signed in 1713 between various European states, ending the War of the Spanish Succession and marking the emergence of Britain as a dominant world power.