4. Some households organize their consumption expenditure factorizing extra or unexpected future needs. Explain why these households' consumption patterns is different by using appropriate consumption theories that are different as the consumption pattern described in the Keynesian theory.
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Keynes argued that consumption is influenced by income levels and that it plays a crucial role in determining the overall level of economic demand. According to Keynes, individuals tend to spend a portion of their income on consumption goods and services. This is Show more…
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