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
You might also like to view...
According to the textbook, which of the following methods for coordinating the supplies and demands for scarce goods tends to work best to enhance the freedom and power of people who want the goods?
A) A lottery B) Equal shares for all C) First come, first served D) Highest money bid E) Might makes right
The Federal Reserve System was founded in:
a. 1935. b. 1929. c. 1933. d. 1913.
Find the annual interest rate that would create a perpetual cash flow stream of $15,000 when the present value of the asset is $100,000.
A. 0.15 percent B. 0.1765 percent C. 15 percent D. 17.65 percent
Which statement is false?
A. The main liberal theories of poverty are employment discrimination, black male joblessness, and the inadequacy of human capital. B. William Julius Wilson sees racism and technological change as leading causes of black poverty. C. Barbara Ehrenreich and Frances Fox Piven call for a large government jobs program to wipe out poverty. D. None of these statements are false.