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Questions › GATE › GATE 2025 › Q30
1 mark, −0.333Macroeconomics › Consumption and investment › The Keynesian consumption functionModerateabout 2 min

GATE 2025 Question 30: Consumption and investment

Which one of the following statements is NOT CORRECT in the context of Keynesian Absolute Income Hypothesis?

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Consumption and investment has come up 74 times in 7 exams since 2005.

What this question tests

This question is on The Keynesian consumption function, part of Consumption and investment in Macroeconomics.

Consumption as a function of current income: the propensities to consume and save.

TestStop has 17 past-paper questions on this subtopic; the nearest in year are below.

  • GATE 2023 · Q31Consider the Keynesian consumption function C = α + β Y, where C is the aggregate consumption, Y is the…
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Question from the GATE 2025 paper. Solutions are TestStop's own. Not affiliated with or endorsed by any examination authority.