"If income increases then consumption increases and if income decreases then consumption also decreases."

Which of the following options is true in regards to the above statement?

The statement is true

Option 1: The statement is true

This is the most accurate option. In economics, there's a well-established concept known as the consumption function, which highlights a positive correlation between income and consumption. As income rises, people tend to spend more. Conversely, when income falls, consumption typically dips as well.