In the Keynesian model, the consumption function is given by C = a + bY, where 'b' represents: MCQ with Answer and Explanation

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In the Keynesian model, the consumption function is given by C = a + bY, where 'b' represents:

A. Average propensity to consume

B. Autonomous consumption

C. Marginal propensity to consume

D. Marginal propensity to save

Answer: Option C

Solution (By JKSSB Mock Tests)

In the consumption function C = a + bY, 'a' is autonomous consumption and 'b' is the marginal propensity to consume (MPC).

This question belongs to: Economy GK Economy Set 1

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Correct Answer: Option C

Explanation:
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Correct Answer: Option A

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Correct Answer: Option B

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