Consumption function: Difference between revisions
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Usually defined as: C = a + bY | Usually defined as: C = a + bY | ||
where C = consumption, | |||
a = consumption at zero income, | |||
b = marginal propensity to consume, and | |||
Y = income. | |||
== See also == | == See also == | ||
* [[Marginal propensity to consume]] | * [[Marginal propensity to consume]] | ||
Revision as of 13:33, 28 May 2013
Economics. An equation which defines the relationship between consumption and income.
Usually defined as: C = a + bY where C = consumption,
a = consumption at zero income,
b = marginal propensity to consume, and
Y = income.
