When graphing the consumption function, we include a 45-degree reference line. What is TRUE at the points at which the consumption function crosses this line?
A. Planned real consumption spending is zero.
B. Planned real saving is zero.
C. Real disposable income is zero.
D. Real GDP is zero.
Answer: B
Economics
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A) movement rightward along a supply curve. B) movement leftward along a supply curve. C) shift rightward in the supply curve. D) shift leftward in the supply curve.
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If a state requires all drivers to purchase auto insurance, insurance companies still face the problem of
A) sunk costs. B) excess demand for their insurance. C) correctly pricing their insurance. D) adverse selection.
Economics