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Which factor does NOT influence the propensity to consume of a community, according to Keynes?
  • a)
    Distribution of income
  • b)
    Stock of wealth
  • c)
    Fiscal policy
  • d)
    Windfall gains and losses
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
Which factor does NOT influence the propensity to consume of a communi...
Fiscal policy influences the propensity to consume through taxation and government spending. However, it is not explicitly mentioned as one of the factors that directly influence the propensity to consume according to Keynes.
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Which factor does NOT influence the propensity to consume of a community, according to Keynes?a)Distribution of incomeb)Stock of wealthc)Fiscal policyd)Windfall gains and lossesCorrect answer is option 'C'. Can you explain this answer?
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