Why do families with high incomes have a low marginal propensity to consume? Give a brief criticism of Keynes’ absolute income hypothesis. According to the life cycle hypothesis, the average...

Why do families with high incomes have a low marginal propensity to consume?

Give a brief criticism of Keynes’ absolute income hypothesis.

According to the life cycle hypothesis, the average propensity to consume will be smaller at higher levels of a family’s

income and larger at lower levels of a family’s income. Why?