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

Question

Quizplus · Accepted Answer

The consumption function is a model that shows the relationship between disposable income and consumer spending. It is a key concept in macroeconomics and is used to forecast changes in aggregate demand. Dissaving refers to spending more than one's disposable income, investment refers to purchasing assets for future growth, and inventory investment refers to the purchasing of goods for future sale. None of these options accurately describe the relationship between disposable income and consumer spending.

How Much People Plan to Consume at Various Levels of Disposable