Consumption expenditure decreases when decreases.
A) saving
B) the interest rate
C) the price level
D) disposable income

Question

Quizplus · Accepted Answer

Consumption expenditure is directly related to disposable income. As disposable income decreases, consumption expenditure also decreases. The other options (A, B, and C) can affect consumption expenditure in various ways, but they are not directly related to it in the same way that disposable income is.

Consumption Expenditure Decreases When Decreases