The 45-degree line on a graph relating consumption and income shows:
A)all points where the MPC is constant.
B)all points at which saving and income are equal.
C)all the points at which consumption and income are equal.
D)the amounts households will plan to save at each possible level of income.
Answer:C
The 45-degree line on a graph relating consumption and income shows:
A)all points where the MPC is constant. B)all points at which saving and income are equal. C)all the points at which consumption and income are equal. D)the amounts households will plan to save at each possible level of income.