Answer :
The general equation for a linear consumption function is expressed as :
C = a + cY
Where,
C : is the aggregate consumption expenditure
a : represent a positive constant equal to the level of consumption at zero level of income or autonomous consumption.
c : denotes marginal propensity to consume or the slope of the consumption line
Y : Income
Explain consumption function in tabular and graphical form?
To know about this read Tabular Explanation of Consumption function
Graphical Explaination of Consumption function
The general equation for a linear consumption function is expressed as :
C = a + cY
Where,
C : is the aggregate consumption expenditure
a : represent a positive constant equal to the level of consumption at zero level of income or autonomous consumption.
c : denotes marginal propensity to consume or the slope of the consumption line
Y : Income
Explain consumption function in tabular and graphical form?
To know about this read Tabular Explanation of Consumption function
Graphical Explaination of Consumption function
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