If you produce a graph with consumption spending on the vertical axis and disposable income on the horizontal axis, the relation between consumption and income will
A)be inverse.
B)be transcendental.
C)shift unpredictably.
D)be direct.

Question

Quizplus · Accepted Answer

The relation between consumption and income will be direct, meaning as disposable income increases, consumption spending also increases. This is shown by the upward sloping line on the graph, known as the consumption function.

If You Produce a Graph with Consumption Spending on the Vertical