In John Maynard Keynes's Model, the Most Important Determinant of Current

question 94

Multiple Choice

In John Maynard Keynes's model, the most important determinant of current consumption is current income. In Irving Fisher's model, the most important determinant of current consumption is:

• A) also current income.
• B) the interest rate.
• C) lifetime resources.
• D) future income.

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Definitions:

Economic Order

A systematic arrangement of activities and institutions that collectively determine the production, distribution, and consumption of goods and services in a society.

Relative Luminance

A measure of the amount of light that is reflected from or emitted by a surface, viewed from a specific angle, and normalized to a scale from 0 to 1.

Retinal Disparity

The slight difference in the visual images that reach each eye, which is then interpreted by the brain to gauge depth and distance.

Brightness Constancy

The perception of an object maintaining consistent brightness despite changes in the lighting conditions around it.