Which of the following is not usually assumed about the effect of disposable income on aggregate consumer spending. Which is not usually assumed?
A) consumer spending is higher levels of disposable income
B) at low levels of disposable income, saving may be negative
C) consumption is always less than disposable income
D) a rise in income leads to a less than proportionate rise in consumption

Question

Quizplus · Accepted Answer

It is not always assumed that consumption is less than disposable income. In some cases, consumers may spend more than their disposable income, which leads to negative saving.

Which of the Following Is Not Usually Assumed About the Effect