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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Definitions:

Equipment

Tangible property used in the operation of a business that is not intended for sale, typically having a useful life longer than one year.

Credit Side

The right side of a financial ledger, where increases in liabilities, equity, and revenue, and decreases in assets and expenses are recorded.

Chart Of Accounts

A numbering system of accounts that lists the account titles and account numbers to be used by a company.

Account Balance

The difference between the debits and credits recorded in an account, representing the net value at a point in time.