A consumption function shows a
A)positive (direct)relationship between consumption expenditure and price level.
B)negative (inverse)relationship between consumption expenditure and saving.
C)positive (direct)relationship between consumption expenditure and disposable income.
D)negative (inverse)relationship between consumption expenditure and disposable income.

Question

Quizplus · Accepted Answer

A consumption function typically illustrates a positive relationship between consumption expenditure and disposable income, meaning as disposable income increases, consumption expenditure also increases.

A Consumption Function Shows a