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The Keynesian consumption function shows...

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

Text Solution

Verified by Experts

The correct Answer is:
C
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 in come.
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