The consumption function is a function showing the relationship between consumption and
A) disposable income.
B) exports.
C) interest rates.
D) investment.

Question

Quizplus · Accepted Answer

The consumption function shows the relationship between consumption and disposable income. As disposable income increases, consumers tend to spend more leading to an increase in consumption. The other choices, exports, interest rates, and investment, are not directly related to the consumption function.

The Consumption Function Is a Function Showing the Relationship Between