The relationship between disposable income and consumption is
A) positive.
B) negative.
C) nonexistent.
D) U-shaped.
E) not stable because it depends on whether the economy is in equilibrium or not.
Correct Answer:
Verified
Q22: On a graph of the consumption function,
Q23: If your planned consumption expenditure is $600
Q24: A movement along the consumption function shows
Q25: Q26: The slope of the consumption function is Q28: The amount of consumption expenditure that takes Q29: Consumption expenditure exceeds disposable income Q30: As a household's disposable income increases, its Q31: As disposable income _ planned consumption expenditure Q32: When disposable income is zero, consumption expenditure
A)
A) never.
B) when
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents