Economists refer to the simple relationship between consumption and income as

a. autonomous consumption
b. the marginal propensity to consume
c. the absolute income hypothesis
d. disposable income
e. the consumption function

E

Economics

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A usual assumption in real business cycle models is that the economy is populated by a group of identical individuals and the behavior of the group can then be explained in terms of the behavior of one individual, called a(n)

a. maximizing agent. b. representative agent. c. republican agent. d. informative agent. e. democratic agent

Economics

Graphically illustrate and explain what effect an increase in real income will have on the money market

What will be an ideal response?

Economics