The relationship between planned consumption expenditures and the level of real disposable income is called
A) the consumption function.
B) the savings function.
C) the investment function.
D) the aggregate demand function.

Question

Quizplus · Accepted Answer

The relationship between planned consumption expenditures and the level of real disposable income is called the consumption function. It shows how much individuals or households will consume at different levels of income. The other choices, savings function, investment function, and aggregate demand function, are not directly related to the relationship between consumption expenditures and real disposable income.

The Relationship Between Planned Consumption Expenditures and the Level of Real