The consumption function shows the relationship between
A) consumption expenditure and the price level.
B) consumption expenditure and planned income.
C) consumption expenditure and disposable income.
D) inventory levels and real GDP.
E) consumption expenditure and planned inventory investment.

Question

Quizplus · Accepted Answer

The consumption function shows the relationship between consumption expenditure and disposable income, indicating how changes in disposable income affect consumer spending.

The Consumption Function Shows the Relationship Between