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    Macroeconomics Study Set 41
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    Exam 11: Expenditure Multipliers: the Keynesian Model
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    If the Consumption Function Lies Below the 45-Degree Line, Then
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If the Consumption Function Lies Below the 45-Degree Line, Then

Question 37

Question 37

Multiple Choice

If the consumption function lies below the 45-degree line, then saving at these levels of disposable income will


A) equal zero.
B) be negative.
C) be positive.
D) be some amount that cannot be determined without additional information.

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