How much people plan to consume at various levels of disposable income is known as
A) dissaving.
B) investment.
C) the consumption function.
D) aggregate demand.

Question

Quizplus · Accepted Answer

The consumption function is the relationship between disposable income and the amount of money that individuals plan to spend on consumption. It is a key component of macroeconomic analysis and is used to understand how changes in income levels can impact overall consumption patterns. Dissaving refers to spending more than what is earned and investment refers to spending money to create future income or growth. Aggregate demand refers to the total amount of goods and services that are demanded in an economy at any given time, including consumption, investment, government spending, and net exports.

How Much People Plan to Consume at Various Levels of Disposable