Home › Bihar Board Class 12 (Arts) › Economics › Determination of Income and Employment › In the simple Keynesian consumption function, co…
In the simple Keynesian consumption function, consumption mainly depends on what?
AThe rate of interest
BThe price level
CGovernment spending
DHousehold income
Answer & Solution
Correct answer: D. Household income
The most important determinant of consumption demand is household income, which the consumption function links to consumption.
Related questions
With a government, which term simply adds to the autonomous part of demand?How does government spending G affect aggregate demand?With A = 50, MPS = 0.2 and Y = 4000 crore, what is ex ante aggregate demand?Equilibrium output also fixes which variable, given other factors of production?The effective demand principle assumes aggregate supply is what at the fixed price?Under the effective demand principle, what determines aggregate output?Excess demand in the economy leads to what in the long run?What does deficient demand lead to in the long run?