2019 · Q58
According to simple Keynesian theory, the slope of the aggregate consumption curve against income is
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- APositive
- BNegative
- CZero
- DInfinity
Explanation
In simple Keynesian theory consumption rises with income (C = a + bY, with 0 < b < 1), so the aggregate consumption curve slopes upward - its slope (the marginal propensity to consume) is positive. Hence A.