Solved

What Does the 45-Degree Line in the Aggregate Expenditures Model

Question 258

Multiple Choice

What does the 45-degree line in the Aggregate Expenditures model represent?

A) all saving and no consumption
B) all consumption and no saving
C) no consumption and no saving
D) maximum consumption and maximum saving

Related Questions

Q4: Added spending causing income to grow by

Q8: How large was the unemployment rate during

Q75: A tax decrease has more of an

Q77: The balanced budget multiplier means that government

Q174: The slope of the saving schedule is<br>A)

Q194: In the Keynesian macroeconomic equilibrium<br>A) AE =

Q256: A tax increase has a smaller impact

Q257: At equilibrium, if spending increases by $300

Q259: If the marginal propensity to consume is

Q261: Generally, which group of people has the