A consumption function shows a
A) negative (inverse) relationship between consumption expenditure and saving.
B) positive (direct) relationship between consumption expenditure and price level.
C) positive (direct) relationship between consumption expenditure and disposable income.
D) negative (inverse) relationship between consumption expenditure and disposable income.
Correct Answer:
Verified
Q12: Disposable income is equal to
A) aggregate income
Q13: In the very short run, the components
Q14: The four components of aggregate planned expenditure
Q15: An increase in real GDP leads to
A)
Q16: In the very short term, planned investment
Q18: According to the Keynesian theory, the typical
Q19: In the very short term, in the
Q20: Which of the following statements is FALSE?
A)
Q21: There is a movement along the consumption
Q22: The slope of the consumption function is
A)
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