-Household consumption depends on both income and interest rates. In the above figure

Name: -Household consumption depends on both income and interest rates. In the above figure
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Household consumption typically depends on both income and interest rates, but when analyzing the effect of one variable, the other is often held constant to isolate its impact. In this context, household income is held constant to examine the effect of interest rates on consumption.

-Household Consumption Depends on Both Income and Interest Rates