Empirical data show that a strong, positive relationship exists between personal consumption expenditures and:
A) planned investment spending.
B) the real interest rate.
C) the level of personal disposable income.
D) progressive taxes.

Question

Quizplus · Accepted Answer

Empirical data indicate that there is a strong, positive relationship between personal consumption expenditures and the level of personal disposable income. This is because as individuals have more disposable income, they are more likely to spend on goods and services, thereby increasing personal consumption expenditures.

Empirical Data Show That a Strong, Positive Relationship Exists Between