Question

Consumption function remains stable in the short run. True or False​

Answer 1

Answer:

True

Explanation:

Consumption is a stable function of income, eg, C = f(Y). In Keynes' terminology, the value of the marginal propensity to consume (MPC) is less than one (i.e., MPC < 1). 4. MPC is less than the average propensity to consume (APC) in the short run (MPC < APC).

here is your answer

Answer 2

Answer:

True

Explanation:

consumption functions remain stable in the short run that is it does not shift upward and downward

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