The relationship between planned real consumption expenditures of households and their current level of real disposable income is
A) investment.
B) dissaving.
C) saving.
D) the consumption function.

Question

Quizplus · Accepted Answer

The relationship between planned real consumption expenditures of households and their current level of real disposable income is known as the consumption function. Therefore, option D is the correct answer. Option A refers to the spending of firms, not households. Option B refers to situations where households are spending more than their current income, which is not necessarily related to the consumption function. Option C refers to situations where households are spending less than their current income, which is also not necessarily related to the consumption function.

The Relationship Between Planned Real Consumption Expenditures of Households and Their