-In the above figure,
A) consumption expenditures are a linear function of labor income.
B) the slope of the function depicted is 0.9.
C) consumption expenditures are positively related to labor income.
D) All of the above answers are correct.

Question

-In the above figure,
A) consumption expenditures are a linear function of labor income. 
B) the slope of the function depicted is 0.9. 
C) consumption expenditures are positively related to labor income. 
D) All of the above answers are correct.

Quizplus · Accepted Answer

All of the statements are true. The graph shows a linear relationship between consumption expenditures and labor income, with a slope of 0.9. This means that for every $1 increase in labor income, consumption expenditures increase by $0.90. The graph also shows that consumption expenditures are positively related to labor income, meaning that as labor income increases, consumption expenditures also increase.

-In the Above Figure