The consumption function relates the consumption expenditure decisions of households to
A) saving decisions of households.
B) investment decisions of firms.
C) the level of disposable income.
D) the nominal interest rate.
Correct Answer:
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Q1: According to the Keynesian theory, the typical
Q3: Disposable income is divided into
A) consumption, saving,
Q4: In the Keynesian model of aggregate expenditure,
Q5: If firms set prices and then keep
Q6: In the very short run, the components
Q7: Disposable income is
A) income minus taxes plus
Q8: The consumption function relates consumption expenditure to
A)
Q9: The Keynesian model of aggregate expenditure describes
Q10: A consumption function shows a
A) negative inverse)
Q11: Saving equals
A) disposable income minus consumption expenditure.
B)
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