Answer to Question #322510 in Macroeconomics for Kritika Tamang

Question

How did the kuznets consumption function criticise the Keynesian consumption function?

Answer 1

Whereas in Keynes' consumption function APC falls as income rises, in Kuznets 'consumption function it remains constant over a long period. Further, the value of marginal propensity to consume which is less than one is much higher in Kuznets' function as compared to that of Keynes.