Which of the following is a basic point that Keynes made about consumption?
A) Consumption and disposal income are inversely related.
B) When disposable income changes,consumption changes by a greater amount.
C) Consumption is dependent upon disposable income.
D) b and c
E) all of the above

Question

Quizplus · Accepted Answer

Keynes argued that consumption is primarily determined by the level of disposable income, meaning as disposable income increases, consumption tends to increase as well, and vice versa. This relationship is foundational to Keynesian economics.

Which of the Following Is a Basic Point That Keynes