According to Keynes, planned consumption
A)decreases as disposable income increases.
B)is unstable and fluctuates widely with changes in disposable income.
C)is positively related to real disposable income.
D)is indirectly related to the interest rate.

Question

Quizplus · Accepted Answer

According to Keynes, planned consumption is positively related to real disposable income, which means that as real disposable income increases, planned consumption also increases. This is reflected in the Keynesian consumption function, where consumption is a linear function of income with a positive slope.

According to Keynes, Planned Consumption