The Keynesian Consumption Function Does Not Display Consumption Smoothing,because ________

question 70

Multiple Choice

The Keynesian consumption function does not display consumption smoothing,because ________.

• A)the average propensity to consume rises with income
• B)the marginal propensity to consume is constant
• C)consumption is not affected by the real interest rate
• D)consumption is not affected by future income

---

Definitions:

Predictive Validity

The extent to which a score on a scale or test predicts future performance on relevant tasks or outcomes.

Big Five

A model that outlines five major dimensions of human personality: Openness, Conscientiousness, Extraversion, Agreeableness, and Neuroticism.

Trait-Related Words

Vocabulary associated with or describing characteristic patterns of behavior, thought, and emotion identifiable in individuals.

Tightness

The characteristic of a culture or group that maintains strict norms and a low tolerance for deviant behavior.