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
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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