In the simple Keynesian consumption function,consumption demand is
A)a function of disposable income alone.
B)a function of disposable income and an autonomous component.
C)simply an autonomous amount exogenous to the model.
D)a function of the interest rate and an autonomous component.
E)a function of the interest rate alone.

Question

Quizplus · Accepted Answer

The simple Keynesian consumption function includes an autonomous component (such as government spending or business investment) as well as a function of disposable income. This implies that consumption demand is not solely determined by disposable income, but also by other factors outside of the individual's control.

In the Simple Keynesian Consumption Function,consumption Demand Is