The short-run model makes use of the ______, which assumes that private consumption expenditure is sensitive to changes in current income.
A) Pareto-optimal condition
B) consumer sovereignty model
C) Keynesian consumption function
D) consumption-smoothing model

Question

Quizplus · Accepted Answer

The Keynesian consumption function assumes that private consumption expenditure is sensitive to changes in current income, making it an appropriate choice for the short-run model. The other options do not relate specifically to consumption expenditure and are not as relevant for this context.

The Short-Run Model Makes Use of the ______, Which Assumes