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6. Answer the following questions based on the figure below: 45° .C 250 500 Income 750 a. The equilibrium level of income in
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Answer #1

Answer
a)
the equilibrium is at C1=45 degree line
where
consumption =income
the equilibrium is at
$500

option 2
=========
b)
the dissaving is left of the equilibrium as the income is less than consumption so it is AB.
Option 2

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c)
Saving is the part of income above consumption so it is CD

Option 1

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