Which of the following statements is true concerning the consumption function?
a. It slopes upward.
b. Its slope equals the MPC.
c. It represents the direct (positive) relationship between consumption spending and the level of real disposable income.
d. If the consumption function lies above the 45-degree line then saving is positive.
e. All of these.
Question 2
The three major revenue sources for the federal government in order of decreasing percentages are individual income taxes, corporate taxes, and social security insurance.
a. True
b. False
Indicate whether the statement is true or false
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