In the Keynesian Consumption Function

question 37

Multiple Choice

In the Keynesian consumption function

• A)consumption is a constant fraction of income.
• B)the marginal propensity to consume is constant.
• C)disposable income determines consumption.
• D)All of the above
• E)None of the above

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Definitions:

Per Capita Income

The per capita income in a particular area or country, found by taking the total revenue generated in that area and dividing it by the population size.

Purchasing Power Parity

An economic theory that compares different countries' currencies through a "basket of goods" approach to determine the relative value of the currencies.

Per Capita Income

measures the average income earned per person in a given area in a specified year.

Life Expectancy

The average number of years a person is expected to live based on demographic factors such as their birth year, current age, and other social factors.