The __________ shows a direct relationship between consumption spending and disposable income.
A)consumption function
B)aggregate demand curve
C)investment demand curve
D)supply of income curve

Question

Quizplus · Accepted Answer

The consumption function is used to show the relationship between consumption spending and disposable income. It illustrates how changes in disposable income can lead to changes in consumer spending, and is often used by economists to analyze patterns in consumer behavior and predict future economic trends. The other answer choices, such as the aggregate demand curve, investment demand curve, and supply of income curve, are not directly related to the concept of consumption spending and disposable income.

The __________ Shows a Direct Relationship Between Consumption Spending and Disposable