The Keynesian Consumption Function Exhibits All of the Following Properties

question 77

Multiple Choice

The Keynesian consumption function exhibits all of the following properties except that:

• A) the marginal propensity to consume is between 0 and 1.
• B) the average propensity to consume decreases as income increases.
• C) only unexpected policy changes influence consumption.
• D) current income is the primary determinant of consumption.