Induced consumption spending
A)represents consumption that is independent of income
B)plus saving equals total consumption spending
C)is positively related to disposable income
D)is equal to autonomous consumption spending in equilibrium
E)is the difference between autonomous consumption spending and disposable income

Question

Quizplus · Accepted Answer

Induced consumption spending refers to consumption spending that increases as disposable income increases. Therefore, it is positively related to disposable income.

Induced Consumption Spending