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The Consumption Curve Intersects the 45-Degree Reference Line at $4

Question 74

Multiple Choice

The consumption curve intersects the 45-degree reference line at $4 trillion.This indicates that


A) autonomous consumption spending is $4.1 trillion.
B) consumption spending is $4 trillion.
C) consumption spending is less than $4 trillion since taxes must be paid.
D) consumption spending is more than $4 trillion since taxes have been paid.

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