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प्रश्न
What is consumption function?
उत्तर
Meaning of Consumption Function:
1. 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.”
2. Symbolically, the relationship is represented as C = f (Y)
Where,
C = Consumption; Y = Income; f = Function
3. 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 ______.
If the Keynesian consumption function is C=10+0.8 Y then, if the disposable income is Rs 1000, what is the amount of total consumption?
If the Keynesian consumption function is C=10+0.8Y then, when disposable income is Rs 100, what is the marginal propensity to consume?
As national income increases______.
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The sum of the MPC and MPS is _______.
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What do you mean by propensity to consume?
Define marginal propensity to consume (MPC).
Define Marginal Propensity to Save (MPS).
State the propositions of Keynes’s Psychological Law of Consumption.
Explain any three subjective and objective factors influencing the consumption function.
Briefly explain the subjective and objective factors of consumption function?
