All totaled, local, state, and federal governments spend ________ on police, the judiciary, and prisons.

Refer to the figure. The consumption schedule indicates that:

A.  consumers will maximize their satisfaction where the consumption schedule and 45° line intersect.
B.  up to a point consumption exceeds income but then falls below income.
C.  the MPC falls as income increases.
D.  households consume as much as they earn.

In return for their financial backing, venture capitalists

A. Share in the profits that may result. B. Are exempt from risk. C. Are repaid a fixed amount of interest. D. Are guaranteed a return on their investment.