The Aggregate Consumption Function

question 78

Multiple Choice

The aggregate consumption function

• A)refers to the relationship between consumption expenditure and relative prices.
• B)describes the relationship between desired consumption expenditure and the factors that determine it, like national income.
• C)is relatively unimportant in macroeconomics, because consumption is such a small component of aggregate expenditure.
• D)and aggregate expenditure are the same.
• E)refers to the relationship between an individual's consumption and his/her wealth.

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