SSC Sample Paper SSC (Group-C) Sample Test Paper-9

  • question_answer
    The Keynesian consumption function shows a relation between

    A)  aggregate consumption and total population.

    B)  aggregate consumption and general price level.

    C)  aggregate consumption and aggregate income

    D)  aggregate consumption and interest rate

    Correct Answer: C

    Solution :

     According to Keynesian Theory of consumption, the current real disposable income is the most important determinant of consumption in the short run. It bases consumption on current income.


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