The consumption schedule shows the relationship of household consumption to the level of
A) saving
B) investment.
C) disposable income.
D) the marginal propensity to consume.

Question

Quizplus · Accepted Answer

The consumption schedule shows the relationship between household consumption and disposable income. It demonstrates how much individuals and households are willing to consume at different levels of disposable income. The schedule indicates that as disposable income increases, consumption increases as well, but not necessarily at the same proportion. This relationship is referred to as the consumption function.

The Consumption Schedule Shows the Relationship of Household Consumption to the Level