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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 | |
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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