Asked by Ashley Elizabeth on Jul 18, 2024
Verified
How much is induced consumption when disposable income is $400 billion?
Induced Consumption
The portion of consumer spending that varies with income. As income increases, consumers will spend more, and as income decreases, consumers will spend less.
Disposable Income
The financial capabilities households have for saving and spending endeavors post income tax deductions.
Consumption
The use of goods and services by households, including the acquisition of goods and services for personal use or ownership.
- Determine induced consumption from disposable income and consumption patterns.
Verified Answer
GS
Learning Objectives
- Determine induced consumption from disposable income and consumption patterns.