The consumption function is a functional relationship between aggregate consumption and:

CA Foundation · Business Economics · PYQS · January 2025
The consumption function is a functional relationship between aggregate consumption and:
(A) A. aggregate disposable income
(B) B. aggregate demand
(C) C. aggregate supply
(D) D. savings

Suggested Answer and Working Notes:

Correct Answer: Option (A)

A. aggregate disposable income

Topics: Theory of Demand and Supply, Determination of National Income

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