Which Statement Is Consistent with What Keynes Believed About Consumption

question 7

Multiple Choice

Which statement is consistent with what Keynes believed about consumption and disposable income?

• A) Consumption depends upon disposable income and falls as disposable income rises.
• B) Consumption rises by the same amount as disposable income rises.
• C) Consumption rises by less than disposable income rises.
• D) Disposable income depends upon consumption.

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Definitions:

Liability

The condition of having legal accountability, particularly relating to debts or legal duties.

Assumption of The Risk

A legal defense that claims the plaintiff knowingly and willingly took on a dangerous activity or condition which led to injury.

Modified

Altered or changed in form, character, or substance, usually to improve or adapt to different situations.

Intentional Torts

Legal wrongs resulting from actions taken with the intent to cause harm or injury, as opposed to resulting from negligence or accidents.