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| Q. |
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 |
| Answer» C. aggregate consumption and aggregate income | |
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Explanation: 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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