Question

Keynes psychological law of consumption on the basis of survey of five family budget .

Answer 1

The Keynes psychological law of consumption on basis of survey of five family members budget depend on which consumption they spend or the expenditure held upon by any family member or as a group.

This law states that if there is an increase in the income then the consumption rate also increases accordingly.

Make sure that the consumption function is related to the relationship of the consumption.