Which Statement Is Consistent with What Keynes Believed About Consumption

question 7

Multiple Choice

Which statement is consistent with what Keynes believed about consumption and disposable income?

• A) Consumption depends upon disposable income and falls as disposable income rises.
• B) Consumption rises by the same amount as disposable income rises.
• C) Consumption rises by less than disposable income rises.
• D) Disposable income depends upon consumption.

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