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Which of the following factors does NOT influence the consumption function, according to Keynes?
  • a)
    Changes in the general price level
  • b)
    Fiscal policy
  • c)
    Average propensity to save (APS)
  • d)
    Rate of interest
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
Which of the following factors does NOT influence the consumption func...
Average propensity to save (APS) is not mentioned as an influencing factor in Keynes's description of the determinants of the consumption function. However, average propensity to consume (APC) is discussed.
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Which of the following factors does NOT influence the consumption function, according to Keynes?a)Changes in the general price levelb)Fiscal policyc)Average propensity to save (APS)d)Rate of interestCorrect answer is option 'C'. Can you explain this answer?
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