Which of the Following Is a Basic Point That Keynes

question 1

Multiple Choice

Which of the following is a basic point that Keynes made about consumption?

• A) Consumption and disposal income are inversely related.
• B) When disposable income changes,consumption changes by a greater amount.
• C) Consumption is dependent upon disposable income.
• D) b and c
• E) all of the above

---

Definitions:

Consumer Price Index

An indicator that evaluates the weighted average cost of a collection of consumer products and services like healthcare, food, and transportation.

Purchasing Power

The worth of a currency represented by how much goods or services can be purchased with one unit of that currency.

Inflation

The rhythm at which the universal cost metrics for goods and services advance, trimming down purchasing reach.

Annual Interest Rate

The percentage increase in money that borrowers pay lenders over a year, based on the original amount of the loan.