Economists refer to the simple relationship between consumption and disposable income as:
A)autonomous consumption.
B)the marginal propensity to consume.
C)the absolute disposable income hypothesis.
D)disposable income.
E)the consumption function.

Question

Quizplus · Accepted Answer

The consumption function is the relationship between consumption and disposable income, showing how much people plan to consume at different levels of income.

Economists Refer to the Simple Relationship Between Consumption and Disposable