Under the Keynesian theory of determination of national income, the assumption is that the consumption increases with an increase in disposable…
CA Foundation · Business Economics · PYQS · May 2025
Under the Keynesian theory of determination of national income, the assumption is that the consumption increases with an increase in disposable income but the increase in consumption will be _____ the increase in disposable income.
Suggested Answer and Working Notes:
Correct Answer: Option (D)
D. Less than
Topics: Determination of National Income
Related Questions in this Topic
- In the four-sector Keynesian model, the equilibrium income condition is:
- If, in the four-sector model, aggregate consumption and taxes are greater than aggregate income, it indicates that:
- Government of India recently launched ‘Make in India' programme. What will be its impact on Aggregate Demand of India?
- Which concept of national income best reflects economic welfare?
- Mixed income of self-employed includes: