Which of the following conjectures that underlie the Keynesian consumption function is not consistent with aggregate
U)S. data in the period after World War II?

Question

Quizplus · Accepted Answer

The average propensity to consume (APC) did not consistently decrease as income increased in the post-World War II period. In fact, empirical evidence suggests that the APC remained relatively stable or even increased for some income levels. This contradicts the Keynesian hypothesis that as people become wealthier, they save more and consume less.

Which of the Following Conjectures That Underlie the Keynesian Consumption