Consumption function

Consumption Function
Definition of Consumption Function
A function for determining the level of consumption in society.

consumption function
mathematical relationship between level of consumption and level of income. It shows that consumption is greatly influenced by income.
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Consumption Function
A consumption function emphasizes the relationship between consumption and income. A more general demand for consumption goods might also focus on other factors like the price of goods.

Consumption Function
The relationship between consumption demand and disposable income. More generally, it refers to the relationship between consumption demand and all factors that affect this demand.
Replacement Value ...

Consumption function The relationship between amount consumed and disposable income. A consumption function tells us how much people plan to consume at various levels of disposable income.

Consumption function - The relationship between total desired consumption expenditure and all the variables that determine it; in the simplest cases, ...

CONSUMPTION FUNCTION: The positive relation between household consumption expenditures and household disposable income that forms one of the key building blocks for Keynesian economics.

consumption function the positive relationship between consumption and income. (25)
consumption share the proportion of GDP that is used for consumption; equals consumption divided by GDP, or C/Y. (22) ...

The Keynesian consumption function (see Keynesian Economics and New Keynesian Economics) holds that there is a positive relationship between people's consumption and their income.

For example, if the consumption function has the form C=C0+cY, where C0 and c are parameters and Y is income, then C0 may be called autonomous consumption.

In the 1930s, John Maynard Keynes introduced the influential theory of consumption function, which described the relationship between consumer income and consumption.

By using the different intensity of stock return covariance with the standard consumption function, it is possible to theoretically define these differences.

See also: Disposable income, National income, Keynesian, Tip, Feedback