The relationship between consumption and income is
A)negative and unstable
B)positive and unstable
C)negative and stable
D)positive and stable
E)impossible to describe without more data

Question

Quizplus · Accepted Answer

Empirical studies have shown that consumption and income have a positive and stable relationship in most cases. As income increases, consumption also tends to increase, but not necessarily at the same rate. This relationship is considered stable over the long term, although there may be fluctuations in the short term.

The Relationship Between Consumption and Income Is