Ayushi Asked a Question
August 13, 2020 11:23 pmpts 30 pts
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
  • 1 Answer(s)
  • 0 Likes
  • 1 Comments
  • Shares
  • 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 thro...
    Show more
    Likes(0) Reply(0)
Head Office :
MPA 44, 2nd floor, Rangbari main Road Mahaveer Nagar II, Kota (Raj.) - 324005

Branch Office (Jaipur):
Shyam Tower, Plot No. F2, 6th Floor Amrapali Circle,
Vaishali Nagar, Jaipur, Rajasthan 302021

Mail: info@eduncle.com
All Rights Reserved © Eduncle.com