Question : Which of the following statements are correct?
- Consumption function refers to functional relationship between consumption and savings.
- It is a psychology concept as it is influenced by the subjective factors like consumers, taste preference, etc.
- It also shows the consumption level at different levels of income.
- C=f(Y)
Option 1: 1,2&3
Option 2: 2,3&4
Option 3: 1,3&4
Option 4: Only 3&4
Answer (1)
25th Jan, 2024
Correct Answer:
2,3&4
Solution : The important points are-
- Consumption function refers to functional relationship between consumption and income.
- It is a psychology concept as it is influenced by the subjective factors like consumers, taste preference, etc.
- It also shows the consumption level at different levels of income.
- C=f(Y)
Hence, Option B is correct.
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