________ describes the relationship between consumption spending and disposable income.
A)Household wealth
B)The liquidity trap
C)The consumption function
D)The paradox of thrift
E)The sales tax rate

Question

Quizplus · Accepted Answer

The consumption function describes the relationship between consumption spending and disposable income. It shows how changes in disposable income lead to changes in consumption spending, and is an important concept in macroeconomics.

________ Describes the Relationship Between Consumption Spending and Disposable Income