Household consumption depends on both income and interest rates. In the above figure

Name: Household consumption depends on both income and interest rates. In the above figure
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Question

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The figure shows the relationship between household income and consumption. Therefore, in the figure, household consumption is dependent on income, while interest rates are not shown to be a factor. Thus, the best choice is D, as household income is the only variable held constant in this figure.

Household Consumption Depends on Both Income and Interest Rates