Multiple Choice
If an economy is operating at a point on the C + I line that lies below the 45-degree line
A) the economy is in equilibrium.
B) the C + I line shifts down.
C) GDP will rise.
D) unwanted inventories will accumulate.
E) intended saving equals intended investment.
Correct Answer:

Verified
Correct Answer:
Verified
Q28: The consumption function expresses the relationship between
Q29: The following question are based on the
Q30: The 45-degree line represents points of equality
Q31: The slope of the consumption function is
Q32: An upward shift in the consumption function
Q34: Which of the following could cause equilibrium
Q35: An autonomous investment change of $2 billion
Q36: If total intended spending is greater than
Q37: An increase in autonomous investment spending initially
Q38: The interest rate<br>A) equals the expected rate