One of these four answers best explains the effect of disposable income on consumption. Which one? O Disposable income does not determine consumption. O Disposable income is the most powerful determinant of income and determines how much an individual consumes. O When an individual has more disposable income, he or she is likely to consume less. O Disposable income is an important determinant of expected future income.
One of these four answers best explains the effect of disposable income on consumption. Which one? O Disposable income does not determine consumption. O Disposable income is the most powerful determinant of income and determines how much an individual consumes. O When an individual has more disposable income, he or she is likely to consume less. O Disposable income is an important determinant of expected future income.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![One of these four answers best explains the effect of disposable income on consumption.
Which one?
O Disposable income does not determine consumption.
O Disposable income is the most powerful determinant of income and determines how much an
individual consumes.
O When an individual has more disposable income, he or she is likely to consume less.
O Disposable income is an important determinant of expected future income.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F18c38525-7a9d-41f9-b4dc-1691dc172b0f%2F18d346aa-46bd-4a07-9ec7-a5f85d4c343a%2Fpvoxrl_processed.png&w=3840&q=75)
Transcribed Image Text:One of these four answers best explains the effect of disposable income on consumption.
Which one?
O Disposable income does not determine consumption.
O Disposable income is the most powerful determinant of income and determines how much an
individual consumes.
O When an individual has more disposable income, he or she is likely to consume less.
O Disposable income is an important determinant of expected future income.
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