The consumption function is the relationship between consumption expenditure and _, other things remaining the same.
A) disposable income
B) potential GDP
C) saving
D) the 45 degree line

Question

Quizplus · Accepted Answer

The consumption function is based on the assumption that other things remain constant and only disposable income changes. Therefore, consumption expenditure is dependent on disposable income.

The Consumption Function Is the Relationship Between Consumption Expenditure and _