The consumption function shows the relation between

consumption and the price of one goodCorrect answerYour answerconsumption and incomeCorrect answerYour answerinvestment and the interest rateCorrect answerYour answersaving and the money supplyCorrect answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer B

Correct answer: B

Keynes held that households' consumption depends mainly on their income.

Concept: Consumption function
Typical timeTypical: 40 s
Your timeYours: —

The rule this testsThe consumption function

Practise this chapter →

Ten questions from Aggregate Demand, Consumption & Saving, at your own pace.

Practise this chapter →

Ten questions from Aggregate Demand, Consumption & Saving, at your own pace.

Practise this chapter All 60 questions in Aggregate Demand, Consumption & Saving Revise the notes for Aggregate Demand, Consumption & Saving

The consumption function shows the relation between

Explanation