Multiple Choice
Along the 45° reference line
A) consumption expenditures equal saving.
B) the relationship between consumption and income is represented.
C) the average propensity to consume is represented.
D) planned real expenditures equal real disposable income.
Correct Answer:

Verified
Correct Answer:
Verified
Q18: At a given interest rate, the investment
Q19: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB5018/.jpg" alt=" -Consider the above
Q20: The consumption function relates<br>A) a household's consumption
Q21: If the MPC is 0.75, then the
Q22: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB5018/.jpg" alt=" -In the above
Q24: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB5018/.jpg" alt=" Note: Amounts in
Q25: When the average propensity to save (APS)
Q26: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB5018/.jpg" alt=" -Refer to the
Q27: Ignoring the government and foreign sectors, equilibrium
Q28: The consumption function shows<br>A) a positive relationship