Use app×
QUIZARD
QUIZARD
JEE MAIN 2026 Crash Course
NEET 2026 Crash Course
CLASS 12 FOUNDATION COURSE
CLASS 10 FOUNDATION COURSE
CLASS 9 FOUNDATION COURSE
CLASS 8 FOUNDATION COURSE
0 votes
370 views
in Income Output Determination by (56.2k points)

What is consumption propensity or consumption function ?

1 Answer

+1 vote
by (65.1k points)
selected by
 
Best answer

According to Prof. Keynes, the part of income which is spent on comsumption is the consumption propensity or consumption function. Thus, the quantity of consumption depends upon the income of a person. When there is a rise in income, consumption also increases, and when the income falls, consumption decreases.
C = F(Y).

Welcome to Sarthaks eConnect: A unique platform where students can interact with teachers/experts/students to get solutions to their queries. Students (upto class 10+2) preparing for All Government Exams, CBSE Board Exam, ICSE Board Exam, State Board Exam, JEE (Mains+Advance) and NEET can ask questions from any subject and get quick answers by subject teachers/ experts/mentors/students.

Categories

...