The consumption function shows the relationship between consumption expenditure and
A)the interest rate.
B)the price level.
C)disposable income.
D)saving.
E)nominal income.

Question

Quizplus · Accepted Answer

The consumption function shows the relationship between consumption expenditure and disposable income, as income is the primary determinant of consumption. The other options (A) interest rate, (B) price level, (D) saving, and (E) nominal income may have some impact on consumption, but they are not directly included in the consumption function.

The Consumption Function Shows the Relationship Between Consumption Expenditure and