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Economics miscellaneous

  1. The Keynesian consumption function shows a relation between
    1. aggregate consumption and total population.
    2. aggregate consumption and general price level.

    3. aggregate consumption and aggregate income
    4. aggregate consumption and interest rate
Correct Option: 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 income.



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