Multiple Choice
Which of the following statements is not true about the consumption function?
A) The equation is written as C = a + bYD.
B) It indicates the rate of consumer spending that will take place at various disposable income levels.
C) It indicates that consumption is inversely related to disposable income.
D) It shows how consumption is influenced by disposable income.
Correct Answer:
Verified
Correct Answer:
Verified
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