Which of the following is a characteristic of consumption according to Keynes?
A) consumption depends on disposable income
B) consumption and disposable income have a direct relationship
C) when disposable income changes,consumption changes by less
D) a and c
E) a,b,and c

Question

Quizplus · Accepted Answer

Keynesian economics suggests that consumption is primarily determined by disposable income (A), indicating a direct relationship between consumption and disposable income (B). Additionally, it posits that when disposable income changes, consumption tends to change but by a smaller proportion, reflecting the concept of marginal propensity to consume (C). Therefore, all three statements (A, B, and C) are characteristics of consumption according to Keynes, making E the correct choice.

Which of the Following Is a Characteristic of Consumption According