If the consumption function is above the 45-degree line
A. consumption exceeds income and saving is negative.
B. consumption is less than income and saving is positive.
C. consumption is less than income and saving is negative.
D. consumption exceeds income and saving is positive.
Answer: A
You might also like to view...
Refer to Figure 1-6. Calculate the area of the trapezoid X
A) $361 B) $450 C) $1,020 D) $1,140
The chief cause of short-run changes in exchange rates is
a. the world's political situation. b. "hot money" chasing high interest rates. c. changes in consumer tastes. d. central bank interventions.
Each of the following took place in the latter half of the 1990s except
A. a declining federal budget deficit. B. a declining unemployment rate. C. the spread of computerization. D. a rising rate of inflation.
The federal funds rate and the quantity demanded of reserves have a(n) ____________ relationship. This is because as the federal funds rate moves down, it becomes _______________ for banks to hold reserves, encouraging banks to hold ____________ in reserves to guard against checkable deposit withdrawals
A) inverse; more expensive; more B) direct; more expensive; less C) inverse; cheaper; more D) direct; cheaper; more