A consumption function shows a
A) negative (inverse) relationship between consumption expenditure and saving.
B) positive (direct) relationship between consumption expenditure and the price level.
C) negative (inverse) relationship between consumption expenditure and disposable income.
D) positive (direct) relationship between consumption expenditure and disposable income.
Correct Answer:
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Q13: According to the Keynesian theory, the typical
Q14: The components of aggregate expenditure include
I. imports.
II.
Q15: In the Keynesian model of aggregate expenditure,
Q16: The consumption function relates the consumption expenditure
Q17: Saving equals
A) disposable income minus taxes.
B) disposable
Q19: Disposable income is equal to
A) consumption expenditure
Q20: If firms set prices and then keep
Q21: A movement along the consumption function is
Q22: As disposable income increases, consumption expenditures
A) increase
Q23: 
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