The consumption function shows how much
A)real disposable income people will earn at each income tax bracket.
B)all households plan to consume at each level of savings.
C)all households plan to consume at each possible real interest rate.
D)all households plan to consume at each level of real disposable income.

Question

Quizplus · Accepted Answer

The consumption function represents the relationship between total consumption and real disposable income, indicating how much households plan to consume at each level of income.

The Consumption Function Shows How Much