A movement along the consumption function shows the change in consumption expenditure as a result of a change in
A)net taxes.
B)saving.
C)disposable income.
D)the interest rate.
E)the price level.

Question

Quizplus · Accepted Answer

The consumption function shows the relationship between consumption expenditure and disposable income, so a movement along the consumption function means a change in consumption expenditure as a result of a change in disposable income. Choices A, B, D, and E do not have a direct relationship with the consumption function.

A Movement Along the Consumption Function Shows the Change in Consumption