Along the 45° reference line
A) the average propensity to consume is represented.
B) planned real expenditures equal real disposable income.
C) consumption expenditures equal saving.
D) the relationship between consumption and income is represented.
B
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When the Federal Reserve increases the money supply, at the previous equilibrium interest rate households and firms will now have
A) the amount of money that they want to hold. B) more money than they want to hold. C) less money than they want to hold. D) to sell Treasury bills.
The average total cost curve
a. is downward sloping at all levels of output b. is downward sloping when marginal costs are decreasing and upward sloping when marginal costs are increasing c. is upward sloping when marginal costs are decreasing and downward sloping when marginal costs are increasing d. does not vary with output