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A graph plots consumption in billions versus income in billions. 2 rising lines are graphed.The horizontal axis is labeled income in billions. It ranges from
A graph plots consumption in billions versus income in billions. 2 rising lines are graphed.The horizontal axis is labeled income in billions. It ranges from 0 to 120 in increments of 20. The vertical axis is labeled consumption in billions. It ranges from 0 to 120 in increments of 20. A rising line at an angle of 45 degrees with the horizontal axis, begins at the origin, passes through (60, 60), and ends at (120, 120). Another rising line labeled C begins at (0, 20), intersects the 45-degree line at (60, 60), and ends at a point below the ending point of the 45-degree line. Refer to the given figure. If the relevant saving schedule were constructed, The consumption schedule shows Multiple Choice that the MPC increases in proportion to GDP. that households consume more when interest rates are low. the amounts households intend to consume at various possible levels of aggregate income. that consumption depends primarily on the level of business investment
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