The two parts of the Keynesian consumption function are consumption that depends on ________ and consumption that depends on ________.
A)disposable income; factors other than disposable income
B)planned spending; unplanned spending
C)real income; nominal income
D)money; wealth

Question

Quizplus · Accepted Answer

The slope of the consumption function is based on disposable income, whereas the vertical intercept of the consumption function is based on other factors (e.g., wealth and expectations).

The Two Parts of the Keynesian Consumption Function Are Consumption