John Maynard Keynes believed that the marginal propensity to consume:
A) was zero.
B) was between zero and one.
C) was one.
D) increased as income increased.

Question

Quizplus · Accepted Answer

Keynes believed that the marginal propensity to consume was between zero and one, meaning that as income increased, people would spend a portion of that increase on consumption. He argued that this was an important driver of economic growth and stability, as increased consumption would lead to increased production and employment.

John Maynard Keynes Believed That the Marginal Propensity to Consume