The Absolute Income Hypothesis is based on this man's consumption function.
To illustrate his points, this man used the example of a beauty contest run by a newspaper and a parable about bananas that are only good for a short time. This man stated that the interest rate that made the value of future returns on a capital good equal to its purchase price was the marginal efficiency of capital. The Absolute Income Hypothesis is based on this man's consumption function. This man also introduced the notion of aggregate demand. The author of The General Theory of Employment, Interest, and Money, for 10 points, name this economist who advocates an active government in the economy through actions such as stimulus spending during a deficit.
To illustrate his points, this man used the example of a beauty contest run by a newspaper and a parable about bananas that are only good for a short time.
John Maynard Keynes