Question:medium

Total consumption expenditure by households under Keynesian Economics is a combination of __________ and ________ .

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Understand the distinction between autonomous and induced components in Keynesian economics to analyze expenditure functions.
Updated On: Jan 13, 2026
  • Autonomous Consumption, Autonomous Investments
  • Autonomous Investments, Induced Consumption
  • Induced Investments, Autonomous Investments
  • Autonomous Consumption, Induced Consumption
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The Correct Option is D

Solution and Explanation

Keynesian economics defines total consumption expenditure as autonomous consumption (independent of income) plus induced consumption (dependent on income). These two components constitute the economy's total expenditure.
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