The consumption schedule shows:
A)that the MPC increases in proportion to GDP.
B)that households consume more when interest rates are low.
C)that consumption depends primarily upon the level of business investment.
D)the amounts households plan or intend to consume at various possible levels of aggregate income.

Question

Quizplus · Accepted Answer

The consumption schedule shows the amounts that households plan or intend to consume at various possible levels of aggregate income. It does not necessarily indicate a correlation with interest rates or business investment.

The Consumption Schedule Shows