Question

The consumption function shows the

relationship between consumer expenditure and

(a) interest rate

(b) tax rate

(c) savings

(d) disposable income

​

Answer 1

Your answer is = savings

Consumption function, in economics, the relationship between consumer spending and the various factors determining it. At the household or family level, these factors may include income, wealth, expectations about the level and riskiness of future income or wealth, interest rates, age, education, and family size.☺