Which of the following is a feature of the Keynesian consumption function?
A. Consumption is a function of current disposable income
B. Average propensity to consume rises with income
C. Consumption depends only on the rate of interest
D. Consumption is independent of income
Answer: Option A
Solution (By JKSSB Mock Tests)
The simple Keynesian consumption function states that current consumption depends primarily on current disposable income, with a positive marginal propensity to consume less than one.
Explanation:
Absolute poverty is measured with reference to a fixed poverty line based on minimum calorie requirements or income needed to meet basic needs. Gini and Lorenz measure inequality (relative poverty aspects).
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