Which of the following statements is true?

Question

Quizplus · Accepted Answer

This statement is true according to the Keynesian theory, which states that a change in income will cause a change in consumption. Similarly, a change in consumption will cause a change in income through the multiplier effect, where an increase in consumption leads to an increase in demand for goods and services, which in turn leads to an increase in production and incomes. Therefore, both income and consumption are positively related and affect each other in the economy.

Which of the Following Statements Is True