In the Simple Keynesian Consumption Function,consumption Demand Is

question 15

Multiple Choice

In the simple Keynesian consumption function,consumption demand is

• A)a function of disposable income alone.
• B)a function of disposable income and an autonomous component.
• C)simply an autonomous amount exogenous to the model.
• D)a function of the interest rate and an autonomous component.
• E)a function of the interest rate alone.

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Definitions:

Exchange Rate

The cost of a nation's currency expressed in the currency of a different nation.

British Pound

The currency of the United Kingdom, widely used in international finance and trade.

Production Materials

Raw materials and components used in the manufacturing process to create finished goods.

Held-To-Maturity

A categorization for investments in fixed income securities that the investor intends and is able to hold until the date of maturity.