The Keynesian view of consumption differs from the permanent income hypothesis because the Keynesian view assumes that:

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The Keynesian view posits that consumption is primarily influenced by current income, meaning that as people's current income changes, their consumption patterns are likely to change accordingly. This contrasts with the permanent income hypothesis, which suggests that consumption is based on an individual's lifetime income expectations rather than just their current income.

The Keynesian View of Consumption Differs from the Permanent Income