The level of consumption _____ as the stock of liquid assets in the hands of consumer rises and it ____ as the level of disposable income rises.

Question

Quizplus · Accepted Answer

The level of consumption increases with both the stock of liquid assets in the hands of consumers and the level of disposable income. More liquid assets or higher disposable income generally means consumers are more willing and able to spend.

The Level of Consumption _____ as the Stock of Liquid