Meaning of “consumption function” in the English Dictionary


"consumption function" in Business English

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consumption functionnoun [ S ]

uk us

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.

(Definition of “consumption function” from the Cambridge Business English Dictionary © Cambridge University Press)