According to Keynes,the level of consumer expenditures was a stable function of
A)national income.
B)gross income.
C)disposable income.
D)net income.
E)None of the above

Question

Quizplus · Accepted Answer

According to Keynes, the level of consumer expenditures was a stable function of disposable income, meaning the income that is left over after taxes and necessary expenses are subtracted. This is known as the "marginal propensity to consume." Therefore, the correct option is C - disposable income.

According to Keynes,the Level of Consumer Expenditures Was a Stable