Asked by
Bryant Dukes
on Oct 13, 2024
Verified
When disposable income is zero,the level of induced consumption is
A) negative.
B) zero.
C) positive.
D) indeterminate.
Induced Consumption
Induced consumption is the portion of consumer spending that increases with an increase in disposable income.
Disposable Income
The finance available to households for expenditures and saving after reducing income taxes.
- Understand the relationship between disposable income and consumption.
Verified Answer
MU
Learning Objectives
- Understand the relationship between disposable income and consumption.