Consumption function - SlideShare

May 08, 2011 · 1. Consumption Function It is a functional relationship between two aggregates i.e., total consumption and National Income. Consumption is an increasing function of income Symbolically C= f (Y) Consumption Schedule It is the tabular representation of various amounts of consumption expenditure corresponding to different levels of income. 2.…

Consumption function - SlideShare

Feb 08, 2016 · Consumption function 1. The law states that “men are disposed, as a rule, and on the average, to increase their consumption as their income increases but not by as much as the increase in their income” It is also known as “Propensity to Consume” It is called as Consumption Function M A N A G E R I A L E C O N O M I C S…

Consumption: Meaning, Types and Importance of Consumption

Types of Consumption: Consumption is known as direct or final consumption, when the goods satisfy human wants directly and immediately. The goods have reached their final destination, e.g., wearing a shirt or eating a mango or using furniture, in which case the act of consumption is not a single process but is of a continuing nature.…

The Life-Cycle Theory of Consumption (With Diagram)

ADVERTISEMENTS: Let us make an in-depth study of the Life-Cycle Theory of Consumption:- 1. Explanation to the Theory of Consumption 2. The Reconciliation 3. Critics of the Life Cycle Hypothesis. Explanation to the Theory of Consumption: The life-cycle theory of the consumption function was developed by Franco Modigliani, Alberto Ando and Brumberg.…

LESSON 22 THE CONSUMPTION FUNCTION Learning outcomes

LESSON 22 THE CONSUMPTION FUNCTION Learning outcomes After studying this unit, you should be able to: Define consumption function and propensity to consume Find the properties or technical attributes of consumption Know average propensity to consume and marginal propensity to consume Identify the individual motive and the business motives…