Question

If distribution of income is equal then propensity to consume of the country as a whole will be relatively

Answer 1

Explanation:

Presenting real world conclusion with no theoritical model assumptions.

Unaffected

Reasoning : It is all about preferences of different individuals. So you can never say what happens exactly.

Empirical results show different results at different points of time.

Whenever something comes at individual level choices, things become ambiguous.

Example - Both Japan and US are strong economies. But in Japan MPC is lower that that of US.

So, MPC is conditional more on other factors rather than wealth.

A lot of economic and social factors are very significant and should be considered. Example - Status, traditions, greed, mentality, personal attributes.

As a conclusion, Unaffected is least wrong answer if only income inequality is considered