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- Induced consumption is the portion of consumption that varies with disposable income. When a change in disposable income “induces” a change in consumption on goods and services, then that changed consumption is called “induced consumption”. In contrast, expenditures for autonomous consumption do not vary with income. For instance, expenditure on a consumable that is considered a normal good would be considered to be induced. In the simple linear consumption function, C = a + b × Y d {\displaystyle C=a+b\times Y_{d}} induced consumption is represented by the term b × Y d {\displaystyle b\times Y_{d}} , where Y d {\displaystyle Y_{d}} denotes disposable income and b {\displaystyle b} is called the marginal propensity to consume.
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indubitableness, indubitably, indubitatively, induce, induced, inducedly, inducement, inducer, induciae, inducible
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"induced consumption." Anagrams.net. STANDS4 LLC, 2024. Web. 13 May 2024. <https://www.anagrams.net/induced%20consumption>.
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