Question
According to Keynes, what is the most important determinant of households' spending on goods and services?
The price level.
The interest rate.
Autonomous consumption.
Disposable income.
The price level.
The interest rate.
Autonomous consumption.
Disposable income.
Answers
GPT-5 mini
Disposable income.
Keynes's consumption function (C = a + bYd) holds that current disposable income is the primary determinant of households' spending, with autonomous consumption as a fixed intercept.
Keynes's consumption function (C = a + bYd) holds that current disposable income is the primary determinant of households' spending, with autonomous consumption as a fixed intercept.