In the aggregate expenditures model, the consumption schedule is shown to be
A)directly related to real interest rates.
B)inversely related to real interest rates.
C)directly related to real income GDP.
D)inversely related to real income GDP.

Question

Quizplus · Accepted Answer

The consumption schedule in the aggregate expenditures model is directly related to real income GDP, meaning as real income GDP increases, consumption also increases.

In the Aggregate Expenditures Model, the Consumption Schedule Is Shown