The Keynesian Consumption Function Is C = a + BYd

question 9

Multiple Choice

The Keynesian consumption function is C = a + bYd. What does "a" represent?

• A) The marginal propensity to consume
• B) Disposable income
• C) Autonomous consumption spending
• D) Total consumption

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Definitions:

Political Conditions

The current state of the government and political climate that can affect economic and business environments.

Economic Conditions

The state of the economy at a given time, including factors like inflation, unemployment rates, and economic growth.

Return On Total Assets

A financial metric that measures the profitability of a company relative to its total assets, indicating how efficiently a company uses its assets to generate profit.

Net Income

The amount of money that remains after all operating expenses, taxes, and costs have been subtracted from total revenues.