"Men Are Disposed, as a Rule, and on the Average

question 27

Multiple Choice

"Men are disposed, as a rule, and on the average, to increase their consumption as their income increases, but not by as much as the increase in their incomes." Which of the following is consistent with this statement by J.M.Keynes?

• A)The slope of the consumption function is positive and less than one.
• B)The slope of the consumption function is greater than that of the 45-degree line.
• C)The slope of the consumption function is negative.
• D)The slope of the consumption function is equal to one.

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The amount of income distributed to shareholders after taxes have been accounted for.

Excise Tax

A tax directly levied on certain goods, services, or activities, often to discourage their use or consumption.

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A taxation principle stating that the amount of tax an individual pays should correspond to the level of government services they receive.