The consumption function shows the relationship between consumption spending and ___. The slope of the consumption function is the _. Changes in consumption can be predicted by multiplying the change in ___ by the If the MPC

C = a + bY ; where :- C = Consumption , Y = Income , a = Autonomous Consumption i.e consumption at 0 level of income , b = MPC i.e additional consumption consumed from additional income = ΔC / ΔY

b = MPC i.e change in C due to additional change in Y = ΔC / ΔY is the slope of Consumption Function

MPC = ΔC / ΔY .

So, change in consumption i.e ΔC = MPC X ΔY

The consumption function shows the relationship between consumption spending and _______. The slope of the consumption function is the _________. Changes in consumption can be predicted by multiplying the change in _______ by the If the MPC

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The consumption function shows the relationship between consumption spending and ___. The slope of the consumption function is the _. Changes in consumption can be predicted by multiplying the change in ___ by the If the MPC