What is the ‘consumption function’ or ‘propensity to consume’?

1.	What is the ‘consumption function’ or ‘propensity to consume’?
Answer» Consumption function signifies the functional relationship between income and consumption. In other words, C = f(Y) where C = Consumption and Y – Income.

Answer»

Consumption function signifies the functional relationship between income and consumption. In other words,

C = f(Y)

where C = Consumption and Y – Income.

Discussion