In the standard 45° line expenditure model, the C + I line and the C line are parallel because
A. all I is assumed to be autonomous.
B. all I is assumed to be induced.
C. consumption depends on disposable income.
D. I rises with GDP at the same rate as C.
Answer: A
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If total spending is greater than current output, GDP will rise.
Answer the following statement true (T) or false (F)