Consumption Function Economics General (1 results)

Taschenbuch. Condition: Neu. nach der Bestellung gedruckt Neuware - Printed after ordering - In economics, the consumption function is a single mathematical functionused to express consumer spending. It was developed by John MaynardKeynes and detailed most famously in his book The General Theory ofEmployment, Interest, and Money. The function is used to calculate theamount of total consumption in an economy. It is made up of autonomousconsumption that is not influenced by current income and inducedconsumption that is influenced by the economy's income level. The simpleconsumption function is shown as the linear function: C = c0 + c1Ydwhere C = total consumption, c0 = autonomous consumption (c0 > 0), \*c1 is the marginal propensity to consume (ie the induced consumption) (0.…