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A Graphical Plot of Consumption Expenditures Against Disposable Income for the US

Question 24

Multiple Choice

A graphical plot of consumption expenditures against disposable income for the US over the past 20 years shows


A) no apparent relationship between consumption and disposable income
B) consumption remaining roughly constant as disposable income rises
C) consumption falling as disposable income rises
D) consumption rising as disposable income has fallen
E) consumption rising almost proportionately as income rises

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