The graph of the consumption function has consumption expenditure on the vertical axis and
A)disposable income on the horizontal axis.
B)the Consumer Price Index on the horizontal axis.
C)time on the horizontal axis.
D)the interest rate on the horizontal axis.

Question

Quizplus · Accepted Answer

The consumption function typically relates consumption expenditure to disposable income, so disposable income is on the horizontal axis.

The Graph of the Consumption Function Has Consumption Expenditure on the Vertical