Question

In case of Keynes' Psychological Law of
Consumption Function, which one of the
following statements is incorrect?
A As disposal income increases,
consumption also increases, but less than
proportionately.
B. Marginal propensity to consume is
positive but less than unity.
C. As disposable income increases, average
propensity to consume falls, and vice
Versa.
D. Average propensity to consume equals
marginal propensity to consume at all
levels of income.​

Answer 1

Answer:

poseable income increases average propensity to consume falls and vice versa