With consumption expenditure on the vertical axis and disposable income on the horizontal axis the consumption function intersects the 45-degree line at $8 trillion. This result indicates that consumption spending is more than $8 trillion because taxes have been paid. O consumption spending is less than $8 trillion because taxes must be paid. autonomous consumption spending is $8 trillion. consumption spending is $8 trillion when disposable income is $8 trillion.

With consumption expenditure on the vertical axis and disposable income on the horizontal axis the consumption function intersects the 45-degree line at $8 trillion. This result indicates that consumption spending is more than $8 trillion because taxes have been paid. O consumption spending is less than $8 trillion because taxes must be paid. autonomous consumption spending is $8 trillion. consumption spending is $8 trillion when disposable income is $8 trillion.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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