keynes argued that real consumption and saving decisions depend primarily on a households expected future…

keynes argued that real consumption and saving decisions depend primarily on a households expected future income. a. false b. true for any given level of real income, the proportion of total real disposable income that is consumed is called a. autonomous consumption. b. the marginal propensity to consume. c. dissaving d. the average propensity to consume.

keynes argued that real consumption and saving decisions depend primarily on a households expected future income. a. false b. true for any given level of real income, the proportion of total real disposable income that is consumed is called a. autonomous consumption. b. the marginal propensity to consume. c. dissaving d. the average propensity to consume.

Answer

Brief Explanations:

  1. Keynes argued that real - consumption and saving decisions depend primarily on current income, not expected future income. So the first statement is false.
  2. The average propensity to consume is defined as the proportion of total real disposable income that is consumed for a given level of real income. Autonomous consumption is the consumption that occurs even when income is zero. The marginal propensity to consume is the change in consumption divided by the change in income. Dissaving is when consumption exceeds income.

Answer:

  1. A. False
  2. D. the average propensity to consume