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Question
The Keynesian consumption function shows a relation between
Options:
A .  aggregate consumption and aggregate income
B .  aggregate consumption and interest rate
C .  aggregate consumption and general price level.
D .  aggregate consumption and total population.
Answer: Option A
Answer: (a)According to Keynesian Theory of consumption, the current real disposable income is the most important determinant of consumption in the short run. It bases consumption on current income.

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