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What is the primary factor that determines consumption according to Keynes's theory?
  • a)
    Rate of interest
  • b)
    Changes in price level
  • c)
    Current level of income
  • d)
    Savings
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
What is the primary factor that determines consumption according to Ke...
According to Keynes's theory of consumption, the primary factor that determines consumption is the current level of income. Keynes emphasized that the absolute size of current income is the key determinant of consumption.
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What is the primary factor that determines consumption according to Keynes's theory?a)Rate of interestb)Changes in price levelc)Current level of incomed)SavingsCorrect answer is option 'C'. Can you explain this answer?
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