Ayushi posted an Question
August 14, 2020 • 04:53 am 30 points
  • UGC NET
  • Economics

15. as per keynesian absolute income hypothesis if in the consumption function c=atby, autonomous consumption is zero then cpr- d 3at yr qhr uf 3yhi gta c= a +

15. As per Keynesian Absolute Income Hypothesis if in the consumption function C=atbY, autonomous consumption is zero then cpr- d 3AT YR qHR Uf 3yHI GTA C= a + bY AT 37T (1) APC > MPC (2) APC=MPC (3) APC< MPC (4) MPC =0

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    Nidhi taparia Best Answer

    The correct answer is (2) APC = MPC. When autonomous consumption is zero, or a = 0 in a + bY = C, basically consumption is proportionate to income or consumption curve passes through the origin. That means APC = MPC.

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