Multiple Choice
Which of the following conjectures that underlie the Keynesian consumption function is not consistent with aggregate Canadian and U.S. data?
A) The marginal propensity to consume is between 0 and 1.
B) The average propensity to consume decreases as income increases.
C) There is a high correlation between income and consumption.
D) Current income is a determinant of consumption.
Correct Answer:
Verified
Correct Answer:
Verified
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