As disposable income ________ planned consumption expenditure ________.
A)increases;increases
B)increases;changes only if net taxes also change
C)increases;decreases
D)decreases;increases
E)decreases;remains the same,since it is autonomous expenditure

Question

Quizplus · Accepted Answer

As disposable income increases, people have more money to spend and are likely to increase their planned consumption expenditure. This is because they have more money available to allocate towards their necessities and desires. This relationship is captured by the consumption function, which describes how changes in disposable income affect planned consumption expenditure.

As Disposable Income ________ Planned Consumption Expenditure ________

As Disposable Income Planned Consumption Expenditure