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State whether the following statements are true or false. 5. At break even point Consumption (C) is equal to income (Y).

State whether the following statements are true or false.

5. At break even point Consumption (C) is equal to income (Y).

Answer: True. Break Even point is a point where the consumption curve intersects the supply curve. At this point, consumption (autonomous + induced) is equal to income, accordingly, saving is equal to zero.