Author Question: The 45-degree line used in a consumption function represents: a. the saving function. b. all ... (Read 92 times)

tsand2 · **on:** Jun 30, 2018

The 45-degree line used in a consumption function represents:
a. the saving function.
b. all points at which saving equals disposable income.
c. all points at which consumption equals saving.
d. all points at which all disposable income is consumed.
e. the aggregate income of the economy.

Question 2

In order to not face tradeoffs, scarcity would have to be eliminated.
a. True
b. False
Indicate whether the statement is true or false