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    Exam 11: Expenditure Multipliers
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    If the Consumption Function Lies Below the 45-Degree Line, Then
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If the Consumption Function Lies Below the 45-Degree Line, Then

Question 107

Question 107

Multiple Choice

If the consumption function lies below the 45-degree line, then saving at these levels of disposable income will


A) be positive.
B) be negative.
C) equal zero.
D) be some amount that cannot be determined without additional information.

Correct Answer:

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