Multiple Choice
At the point where the consumption function crosses the 45-degree line:
A) consumption is equal to disposable income, and therefore, saving is zero.
B) consumption is less than income, and saving is present.
C) consumption is greater than income, and dissaving is present.
D) planned saving equals actual saving minus disposable income.
Correct Answer:
Verified
Correct Answer:
Verified
Q3: Exhibit 8-6 Aggregate expenditures function <img src="https://d2lvgg3v3hfg70.cloudfront.net/TBX9027/.jpg"
Q4: Keynes argued that the economy naturally achieves
Q5: Exhibit 8-4 Disposable income and consumption data
Q7: An increase in consumer wealth shifts the
Q9: The fraction of each added dollar of
Q10: In the simple Keynesian Cross model, the
Q10: The sum of the marginal propensity to
Q11: The marginal propensity to save is:<br>A)the change
Q12: Exhibit 8-6 Aggregate expenditures function <img src="https://d2lvgg3v3hfg70.cloudfront.net/TBX9027/.jpg"
Q110: A rightward shift of the investment demand