In the income-expenditure model, the 45-degree line

A) shows total expenditures at various price levels.
B) marks all equilibrium output levels.
C) is also called the planned expenditures line.
D) is the locus of all the points for which output equals expenditures.


D

Economics

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Indicate whether the statement is true or false

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Suppose the demand for money becomes less sensitive to changes in the interest rate

In moving along an LM curve, an increase in income must be accompanied by a ________ change in the interest rate than before, meaning that the LM curve has become ________. A) greater, steeper B) greater, flatter C) smaller, steeper D) smaller, flatter

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Which of the following is NOT a characteristic of perfectly competitive markets?

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Economics

Demand in the refreshment beverage market has been changing due to

A) changes in income. B) changes in taxes and subsidies. C) changes in the number of buyers. D) changes in tastes and preferences.

Economics