Historically, consumption spending in the United States has _____
a. fluctuated greatly with changes in the level of income
b. remained approximately constant as a percentage of income
c. decreased as a percentage of income
d. varied inversely with the inflation rate
e. varied inversely with the interest rate
b
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The savings rate designates:
A) the difference between household consumption and savings. B) the difference between government revenue and government expenditure. C) the rate of return households earn on their savings. D) the fraction of income that households save.
In a simple economy without government or the foreign sector, saving must equal investment because output is divided into consumption and investment, and income is either consumed or saved
Indicate whether the statement is true or false