Keynes Absolute Income Hypothesis and Consumption Expenditure in Choba, Port Harcourt, Nigeria

This study attempted to revalidate the Keynes Absolute Income Hypothesis among households in Choba Community in Obio/Akpor Local Government Area in Rivers State. This was done by examining the consumption expenditure pattern of clothing in households and communication. The study adopted the cross-sectional survey design with an estimated population of 48,081 inhabitants of Choba community. The sample size consisted of 100 samples drawn from the total population using the Taro Yamane technique. The data collected were analyzed via descriptive methods. The findings revealed that households' expenditure on communication is high in comparison to their expenditure on clothing. Communication expenditure, though less variable than clothing, emerged as a growing necessity for households. The study, therefore, recommends among others that the Government should strengthen fiscal and monetary policies to curb inflation and stabilize the naira.