In the graph for the consumption function, the 45-degree line

A) contains only a consumption component.
B) represents both planned consumption and planned investment.
C) shows various combinations where planned consumption equals real disposable income.
D) reflects a decreasing APC as real disposable income rises.


Answer: C) shows various combinations where planned consumption equals real disposable income.

Economics

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The question of how much labor a firm will hire comes down to:

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