Which one of these helps determine consumption and saving in the Keynesian model?
A) wealth
B) imports
C) technology
D) government regulations

Question

Quizplus · Accepted Answer

Wealth is one of the key factors that determine consumption and saving in the Keynesian model. As per this model, if the wealth of households increases, they tend to consume more and save less. On the other hand, if their wealth decreases, they tend to reduce their consumption and increase their savings.

Which One of These Helps Determine Consumption and Saving in the Keynesian