According to Keynes's absolute income hypothesis, if Record Swap store manager Brenda Nielsen and pop singer Madonna were each given $1,000,

Question

a. Madonna would likely spend less of the $1,000 on consumption than Brenda
b. Madonna would likely spend more of the $1,000 on consumption than Brenda
c. Madonna and Brenda would spend equal amounts of the $1,000 on consumption
d. Madonna and Brenda would save equal amounts over their lifetimes
e. Neither Madonna nor Brenda would save any of the $1,000

Answer 1

A