The consumption function shows
A) the relationship between consumption and saving
B) the relationship between consumption and real disposable income
C) the relationship between consumption and real income
D) the relationship between consumption and nominal income
E) the relationship between total consumption and consumption for durable goods.

Question

Quizplus · Accepted Answer

The consumption function shows the relationship between consumption and real disposable income, as it is a graph or equation that represents how much individuals and households consume at different levels of real disposable income.

The Consumption Function Shows