Economists expect the relationship between consumption and disposable income to be
A)unpredictable.
B)transitory.
C)fixed.
D)inverse
E)stable.

Question

Quizplus · Accepted Answer

The relationship between consumption and disposable income is generally stable, meaning that as disposable income increases, consumption tends to increase as well, albeit not always in a one-to-one ratio. This stable relationship is supported by economic research and is a foundational concept in macroeconomics.

Economists Expect the Relationship Between Consumption and Disposable Income to Be