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Q: In macroeconomic analysis, a consumption function describes the relation between total consumptions and ...................
  • A. quality of the consumption good
  • B. price of the consumption good
  • C. gross national income
  • D. behaviour of the consumer
Correct Answer: Option C - The term consumption function refers to an economic formula that represents the functional relationship between total consumption and gross national income. It is a valuable tool that can be used by economists and other leaders to understand the economic cycle and help them make key decisions about investments as well as monetary and fiscal policy
C. The term consumption function refers to an economic formula that represents the functional relationship between total consumption and gross national income. It is a valuable tool that can be used by economists and other leaders to understand the economic cycle and help them make key decisions about investments as well as monetary and fiscal policy

Explanations:

The term consumption function refers to an economic formula that represents the functional relationship between total consumption and gross national income. It is a valuable tool that can be used by economists and other leaders to understand the economic cycle and help them make key decisions about investments as well as monetary and fiscal policy