What does consumption function mean?
Definitions for consumption function
con·sump·tion func·tion
This dictionary definitions page includes all the possible meanings, example usage and translations of the word consumption function.
Wikipedia
Consumption function
In economics, the consumption function describes a relationship between consumption and disposable income. The concept is believed to have been introduced into macroeconomics by John Maynard Keynes in 1936, who used it to develop the notion of a government spending multiplier.
Wikidata
Consumption function
In economics, the consumption function is a single mathematical function used to express consumer spending. It was developed by John Maynard Keynes and detailed most famously in his book The General Theory of Employment, Interest, and Money. The function is used to calculate 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. This function can be written in a variety of ways, an example being . This is probably the most simplistic form of the consumption function. The simple consumption function is shown as the affine function: where ⁕C = total consumption, ⁕c0 = autonomous consumption, ⁕c1 is the marginal propensity to consume, and ⁕Yd = disposable income. Autonomous consumption represents consumption when income is zero. In estimation, this is usually assumed to be positive. The marginal propensity to consume, on the other hand measures the rate at which consumption is changing when income is changing. In a geometric fashion, the MPC is actually the slope of the consumption function.
Numerology
Chaldean Numerology
The numerical value of consumption function in Chaldean Numerology is: 2
Pythagorean Numerology
The numerical value of consumption function in Pythagorean Numerology is: 9
Translations for consumption function
From our Multilingual Translation Dictionary
- ಬಳಕೆ ಕಾರ್ಯKannada
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"consumption function." Definitions.net. STANDS4 LLC, 2024. Web. 25 Apr. 2024. <https://www.definitions.net/definition/consumption+function>.
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