According to the Keynesian Consumption Function,an Increase in Disposable Income

question 88

Multiple Choice

According to the Keynesian consumption function,an increase in disposable income will result in

• A) a decrease in consumption.
• B) an increase in consumption.
• C) a decrease in investment.
• D) an increase in investment.

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Definitions:

Assets

Resources owned by a business or individual with economic value or future benefits.

Sales Offer

A promotional or sales activity making a specific proposal to entice customers to buy a product or service.

Goods

Physical items that are sold or traded, typically manufactured products or raw materials.

Business Transaction

An economic event with a third party that is recorded in an organization's accounting system.