Suppose that the consumption function crosses the 45-degree line ...

[rmenurse]

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.

[mfedorka]

Answer to Question 1

True

Answer to Question 2

b

[rmenurse]

TYSM

[diana chang]

Excellent