John Maynard Keynes believed that the average propensity to consume:
A)is constant.
B)increases as income increases.
C)decreases as income increases.
D)is less than the marginal propensity to consume.

Question

Quizplus · Accepted Answer

Keynes believed that as income increases, the average propensity to consume decreases because people tend to save a larger portion of their income as they become wealthier.

John Maynard Keynes Believed That the Average Propensity to Consume