consumption function

consumption function
consumption function conˈsumption ˌfunction noun [singular]
ECONOMICS a measure of the changes in the way that consumers spend money on goods and services when there are changes to their income

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consumption function UK US noun [S]
ECONOMICS a way of calculating how the amount of money that people spend on goods and services changes as their income changes: »

The consumption function says that the amount people spend depends on their income, and that as income increases, so does consumption.


Financial and business terms. 2012.

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