The consumption schedule shows: A. that the MPC increases in proportion to GDP. B. that households consume more when interest rates are low. C. that consumption depends primarily on the level of business investment. D. the amounts households intend to consume at various possible levels of aggregate income.

The correct answer is letter "D": the amounts households intend to consume at various possible levels of aggregate income.

Explanation:

The consumption schedule shows the relationship between the income and the expenditures given different sectors in the market. The disposable income is considered for the calculation of the Gross Domestic Product (GDP) in some other situations.

The consumption schedule shows the Average Propensity to Consume (consumption by income) and the Marginal Propensity to Consume (value of each additional dollar spent for consumption).

D) the amounts households intend to consume at various possible levels of aggregate income

Explanation:

Consumption schedule shows the amount households intend to consume at various possible levels of aggregate income.

Consumption schedule also known as consumption function is a schedule which shows the relationship between consumption expenditure and the income level of a consumer.

The consumption function of a consumer depends on the level of disposable income that low disposable income could mean low amount of goods consumed and high disposable income results to high amount of goods to be consumed by the household.

If household consumes more products at low levels of disposable income, this could lead to borrowing or selling of assets to finance the excess consumption in order words dissaving or no savings.

On the other hand, if household consumes less than their disposable income, then there will be an increase in the level of savings.