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Using the Disposable Income Level at Which the Consumption Function

Question 124

Multiple Choice

Using the disposable income level at which the consumption function intersects the 45-degree line,we can identify


A) Full employment at the intersection point.
B) An inflationary gap to the right of the intersection point.
C) Dissaving to the left of the intersection point.
D) Dissaving to the right of the intersection point.

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