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प्रश्न
What do you mean by propensity to consume?
उत्तर
- The consumption function or propensity to consume refers to the income consumption relationship. It is a “functional relationship between two aggregates viz., total consumption and gross national income.”
- Symbolically, the relationship is represented as C = f(Y) Where, C = Consumption; Y = Income; f = Function
- Thus the consumption function indicates a functional relationship between C and Y, where C is the dependent variable and Y is the independent variable, i.e., C is determined by Y. This relationship is based on the ceteris paribus (other things being same) assumption, as only income consumption relationship is considered and all possible influences on consumption are held constant
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संबंधित प्रश्न
The average propensity to consume is measured by ______.
An increase in the marginal propensity to consume will:
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What is consumption function?
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Define average propensity to save (APS).
Define Marginal Propensity to Save (MPS).
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Explain any three subjective and objective factors influencing the consumption function.
Explain Keynes's psychological law of consumption function with a diagram.
Briefly explain the subjective and objective factors of consumption function?
