Question

What factors, other than income, are likely to affect the propensity to consume? Explain how they will affect consumption.

   What factors, other than income, are likely to affect the propensity to consume? Explain how they will affect consumption.

Macroeconomics: An Introductory Text

Macroeconomics: An Introductory Text

John Evans-Pritchard… 1st Edition

Chapter 6, Problem 6

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The propensity to consume refers to the likelihood that individuals will spend money on consumption out of their disposable income. It is often expressed as a function of income, but other factors can also influence this propensity. Show more…

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What factors, other than income, are likely to affect the propensity to consume? Explain how they will affect consumption.

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