The relationship between household spending and disposable income is known as the
A) investment function.
B) multiplier.
C) gross domestic product.
D) consumption function.
E) saving function.

Question

Quizplus · Accepted Answer

The relationship between household spending and disposable income is described as the consumption function. It is a way of characterizing how much people spend based on how much money they have available to them in their disposable income after accounting for taxes and other expenses.

The Relationship Between Household Spending and Disposable Income Is Known