Question

Which expression represents induced consumption in the consumption function?

विकल्प

• \[cY\]

• \[\frac{S}{Y}\]

• \[\frac{C}{Y}\]

• \[\bar{C}\]

Answer 1

In \[C=\bar{C}+cY\], \[cY\] represents induced consumption. It is the income-dependent component of consumption.