The simple, Keynesian consumption function is founded on the notion that total consumption expenditure should
A) increase with disposable income.
B) increase with wealth.
C) increase with expected disposable income.
D) increase with expected inflation.
E) all of the above.

Question

Quizplus · Accepted Answer

The simple Keynesian consumption function posits that total consumption expenditure increases with disposable income, as it is a primary determinant of consumer spending according to Keynesian economics.

The Simple, Keynesian Consumption Function Is Founded on the Notion