Consumption spending cannot be positive if income is zero. The function introduced by British economist John Maynard Keynes indicates the relationship between income and expenditure and the proportion of income spent on goods. b) The Keynesian model cannot explain periods of prolonged unemployment. The consumption function is an equation that shows the relationship between disposable income and consumption, which is the spending by households on goods and services. 6.8 Which of the following statements are correct concerning consumption function? Which of the following statements is true for real GDP levels below $400 billion? There is a positive relationship between consumption spending and interest rate. Consider the consumption function of country A: Country A: C = 2 000 + 0.7YD Which of the following statements concerning the consumption function are correct? (a) Farm conditions in the United States would be improved if the U.S. were to discontinue all supplemental food programs. Consumption is positive even when income is zero. 51. D) Younger households tend to have higher … (c) John Maynard Keynes is credited with the development of the consumption function as well as the notion of aggregate demand. a) an increase in disposable income. Which of the following statement(s) is (are) true? 3) The marginal propensity to save is 0,2. d) none of the above shift the consumption function upward B) The age of the population affects the slope of the consumption function. A) The size of the population affects the slope of the consumption function. A) Saving exists because consumption is smaller than disposable income. If autonomous consumption increases the marginal propensity to consume will increase. a) The classical model cannot explain periods of prolonged unemployment. (b) Net exports can never be negative. Which of the following statement(s) is (are) true? [1] All the statements are correct. Consumption spending increases as income increases. 1) Autonomous consumption spending refers to the part of consumption spending which varies with income. Which one of the following statements is true? Which one of the following statements is true about the consumption function C = 10 + 0,8Y? (b) Net exports can never be negative. Which of the following statements concerning the effects of demographics on consumption is not true? Which of the following will NOT shift the consumption function upward? The consumption function is an economic formula that directly connects total consumption and gross national income. (correct) 4) Induced consumption is equal to Y. Question 197 2) The autonomous consumption is 10,8. (c) John Maynard Keynes is credited with the development of the consumption function as well as the notion of aggregate demand. a. b. C. The value of autonomous consumption is equal to 2 000. C) The corresponding section of the consumption function … 49. 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