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

Question

Quizplus · Accepted Answer

The relationship between households' planned consumption expenditures and households' level of disposable real income is called the consumption function. This is a commonly used concept in macroeconomics to understand the overall consumption behavior of households in the economy.

The Relationship Between Households' Planned Consumption Expenditures and Households' Level