Question

The simplest consumption function assumes ______

विकल्प

• Consumption changes at a constant rate as income changes

• Consumption changes faster with more income

• Consumption does not change with income. 

• Consumption changes with more supply.

Answer 1

The simplest consumption function assumes Consumption changes at a constant rate as income changes.

Explanation:

The most basic consumption function assumes that consumption changes constantly in response to changes in income.