According to the keynesian consumption function, an increase in disposable income will result "an increase in consumption".
<h3>What is
keynesian consumption function/consumption function?</h3>
The consumption function, often known as the Keynesian consumption function, is now a mathematical expression expressing the functional connection between total expenditure and gross domestic product.
Some characteristics of keynesian consumption function are-
- John Maynard Keynes, a British economist, introduced it and said it could be used to monitor and foresee total aggregate consumption spending.
- According to the traditional consumption function, changes in income and consumer spending are entirely correlated. If this were the case, aggregate savings ought to rise proportionately as the GDP does over time.
- The goal is to establish a mathematical link between consumer spending and disposable income, but only at the aggregate level.
- One of the pillars for Keynesian macroeconomic theory is the consistency of either the consumption function, which is based in part upon Keynes' Psychological Law to Consuming and is particularly striking when compared to the volatility of investment.
- The majority of post-Keynesians acknowledge that because spending patterns vary as income increases, so consumption function is just not long-term stable.
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Answer:
superseding or intervening event
Explanation:
A superseding or intervening event refers to an event that occurred after the initial negligent event that caused the injury or the accident. If this intervening event causes further injury or damage, the tortfeasor is not responsible for it.
The golfer (tortfeasor) is responsible for hitting the spectator (initial negligent act), but the lightning hitting him/her while lying on the floor is considered a superseding event and the golfer is not responsible for any damages caused by the lightning.
Answer: Option B
Explanation: In simple words, physiology refer to that branch of biology which studies the functions of some living organisms and the functioning of their body parts.
In the given case, Rudolf has been suffering from high blood pressure and is also stressed about the future.
Thus, from the above we can conclude that he is demonstrating physiological symptoms.
Answer:
The coefficient of cross elasticity of demand is negative, and therefore these goods are complements.
Explanation:
Cross elasticity of demand is the proportionate change in the quantity demanded to the proportionate change in the price of the related goods.
Cross elasticity of demand is negative in case of complementry goods as proportionate increase in price of one goods lead to decrease in the demand of related goods as both are complimentry and demanded jointly. Example: Petrol and car.
Cross elasticity of demand is positive in case of subtitute goods as proportionate decrease in price of one goods lead to decrease in the demand of substitute goods. Example: Tea and Coffee.