Consumption depends positively on ______ and investment depends negatively on ______.
A) disposable income; the real interest rate
B) the real interest rate; disposable income
C) private saving; public saving
D) public saving; private saving

Question

Quizplus · Accepted Answer

According to the Keynesian consumption function, consumption depends positively on disposable income. Investment, on the other hand, depends negatively on the real interest rate, according to the investment demand curve.

Consumption Depends Positively on ______ and Investment Depends Negatively on ______

Consumption Depends Positively on and Investment Depends Negatively on