-Refer to Figure 11-1.The graph shows
A) a negative and relatively stable relationship between real consumption and real disposable income
B) a negative,but unstable,relationship between real consumption and real disposable income
C) a positive,but unstable,relationship between real consumption and real disposable income
D) a positive and relatively stable relationship between real consumption and real disposable income
E) no discernible relationship between real consumption and real disposable income

Question

-Refer to Figure 11-1.The graph shows
A) a negative and relatively stable relationship between real consumption and real disposable income 
B) a negative,but unstable,relationship between real consumption and real disposable income 
C) a positive,but unstable,relationship between real consumption and real disposable income 
D) a positive and relatively stable relationship between real consumption and real disposable income 
E) no discernible relationship between real consumption and real disposable income

Quizplus · Accepted Answer

The graph likely depicts a consumption function, which typically shows a positive and stable relationship between real consumption and real disposable income, as higher income generally leads to higher consumption.

-Refer to Figure 11-1.The Graph Shows