Write short note on the following:
1. Keynes' short run consumption function and its properties.
2. Comparasion between two-sector and three-sector spending multipliers.
1)
Consumption function refers to the relationship between the consumption and factors that influence it. According to Keynes, real consumption depends on the real income. It is also known as the psychological law of consumption. following are properties of consumption function:
Get Answers For Free
Most questions answered within 1 hours.