Author Question: Suppose that the consumption function crosses the 45-degree line at a disposable income level of 800 ... (Read 60 times)

rmenurse · **on:** Jun 30, 2018

Suppose that the consumption function crosses the 45-degree line at a disposable income level of 800 . Assume further that saving equals 200 when disposable income is 1,300 . This implies that the MPC must equal 0.6.
a. True
b. False
Indicate whether the statement is true or false

Question 2

Every time an individual decides to try out new equipment, or finds better ways to manage money, he or she is exhibiting aspects of:
a. money management.
b. entrepreneurship.
c. strategic management.
d. capital management.