In the Keynesian Model, Consumption

question 390

Multiple Choice

In the Keynesian model, consumption

• A) is positively related to the interest rate but negatively related to a temporary change in income.
• B) is positively related to income but saving is not systematically related to either income or interest rates.
• C) and saving are negatively related to the real interest rate.
• D) and saving are positively related to income.

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