{"id":90380,"date":"2025-06-01T10:27:24","date_gmt":"2025-06-01T10:27:24","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=90380"},"modified":"2025-06-01T10:27:24","modified_gmt":"2025-06-01T10:27:24","slug":"according-to-simple-keynesian-theory-the-slope-of-the-aggregate-consu","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/according-to-simple-keynesian-theory-the-slope-of-the-aggregate-consu\/","title":{"rendered":"According to simple Keynesian theory, the slope of the aggregate consu"},"content":{"rendered":"

According to simple Keynesian theory, the slope of the aggregate consumption curve against income is<\/p>\n

[amp_mcq option1=”Positive” option2=”Negative” option3=”Zero” option4=”Infinity” correct=”option1″]<\/p>\n

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This question was previously asked in<\/div>\n
UPSC CAPF – 2019<\/div>\n<\/div>\n
Download PDF<\/a>Attempt Online<\/a><\/div>\n<\/div>\n
The correct answer is A, Positive.<\/section>\n
According to simple Keynesian theory, the consumption function is typically represented as C = a + bY, where C is consumption, a is autonomous consumption (consumption independent of income), b is the marginal propensity to consume (MPC), and Y is income. The slope of the aggregate consumption curve (plotting C against Y) is given by the coefficient of Y, which is the MPC (b).<\/section>\n
The marginal propensity to consume (MPC) represents the proportion of an additional unit of income that is spent on consumption. It is a fundamental assumption in Keynesian economics that the MPC is positive and less than one (0 < MPC < 1). Therefore, the slope of the aggregate consumption curve is positive, indicating that as income increases, aggregate consumption also increases.<\/section>\n","protected":false},"excerpt":{"rendered":"

According to simple Keynesian theory, the slope of the aggregate consumption curve against income is [amp_mcq option1=”Positive” option2=”Negative” option3=”Zero” option4=”Infinity” correct=”option1″] This question was previously asked in UPSC CAPF – 2019 Download PDFAttempt Online The correct answer is A, Positive. According to simple Keynesian theory, the consumption function is typically represented as C = a … <\/p>\n

Detailed SolutionAccording to simple Keynesian theory, the slope of the aggregate consu<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1085],"tags":[1119,1120,1174],"class_list":["post-90380","post","type-post","status-publish","format-standard","hentry","category-upsc-capf","tag-1119","tag-economic-development","tag-national-income-gross-domestic-product","no-featured-image-padding"],"yoast_head":"\nAccording to simple Keynesian theory, the slope of the aggregate consu<\/title>\n<meta name=\"description\" content=\"The correct answer is A, Positive. According to simple Keynesian theory, the consumption function is typically represented as C = a + bY, where C is consumption, a is autonomous consumption (consumption independent of income), b is the marginal propensity to consume (MPC), and Y is income. The slope of the aggregate consumption curve (plotting C against Y) is given by the coefficient of Y, which is the MPC (b).\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/according-to-simple-keynesian-theory-the-slope-of-the-aggregate-consu\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"According to simple Keynesian theory, the slope of the aggregate consu\" \/>\n<meta property=\"og:description\" content=\"The correct answer is A, Positive. According to simple Keynesian theory, the consumption function is typically represented as C = a + bY, where C is consumption, a is autonomous consumption (consumption independent of income), b is the marginal propensity to consume (MPC), and Y is income. 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