-In the above figure, while moving along the line showing the relationship between household income and expenditure,
A) household income is held constant.
B) the interest rate is held constant.
C) household expenditures are held constant.
D) no variable is held constant.

Question

-In the above figure, while moving along the line showing the relationship between household income and expenditure,
A) household income is held constant. 
B) the interest rate is held constant. 
C) household expenditures are held constant. 
D) no variable is held constant.

Quizplus · Accepted Answer

The interest rate is typically held constant when analyzing the relationship between household income and expenditure, allowing the focus to be on how changes in income affect expenditure.

-In the Above Figure, While Moving Along the Line Showing