The relationship that tells us how much a person intends to spend at various levels of income is
A)the spending function.
B)the expenditure function.
C)the consumption function.
D)the buying function.

Question

Quizplus · Accepted Answer

The consumption function is the relationship between disposable income and consumption spending. It helps to determine how changes in disposable income affect spending behavior. The other options, such as the spending function and buying function, are not commonly used economic terms. The expenditure function could refer to different relationships, including the relationship between total spending and price levels, or the relationship between planned investment and actual investment. Therefore, the most appropriate and commonly used term in this context is the consumption function.

The Relationship That Tells Us How Much a Person Intends