Which of the following statements is not true about the consumption function? A)The equation is written as C = a + bY_D. B)It indicates the rate of consumer spending that will take place at various disposable income levels. C)It indicates that consumption is inversely related to disposable income. D)It shows how consumption is influenced by disposable income.

Question

Quizplus · Accepted Answer

The consumption function typically shows that consumption is directly related to disposable income, not inversely. This means as disposable income increases, consumption tends to increase as well.

Which of the Following Statements Is Not True About the Consumption