From TheBestLinks.com
In economics, the consumption fuction calculates the amount of total consumption in an economy. It is made up of autonomous consumption that is not influenced by current income and induced consumption that is influenced by the economy's income level.
The simple consumption fuction is
- C = a + mpc*Y
where C = total consumption, a = autonomous consumption,mpc = the marginal propensity to consume, and Y = disposable income (income after taxes and transfer payments). The second term (mpc*Y) is induced consumption.
See also
Related links
Top visited
0 of
0 links
[no links posted yet]
>> place link >>
Discussion
Last posted
0 of
0 messages
[no messages posted yet]
>> post message >>
Watch
You can
add this article to your own "watchlist" and receive e-mail notification about all changes in this page.
