In a diagram with the consumption function, the 45 -degree line indicates all points where
A. consumption expenditures and saving are equal.
B. saving and investment are equal.
C. consumption expenditures and disposable income are equal.
D. saving and disposable income are equal.
Answer:C
In a diagram with the consumption function, the 45 -degree line indicates all points where
A. consumption expenditures and saving are equal. B. saving and investment are equal. C. consumption expenditures and disposable income are equal. D. saving and disposable income are equal.