In the Keynesian Model, Consumption

question 283

Multiple Choice

In the Keynesian model, consumption

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

---

Definitions:

Conduct

The manner in which an individual behaves or carries out actions, often assessed in legal or professional contexts.

Verbal

Pertaining to or involving words, especially spoken words; often used in contrast to written or non-verbal communication.

Under Seal

A formal method of validating a document by fixing a wax seal, signifying it has legal efficacy or relevance.

Implied

Something suggested or understood without being directly expressed.