Social Consumption, Savings and Investment Flashcards
1
Q
The level of consumption that is independent of income
A
Autonomous Consumption
2
Q
Refers to consumption that is driven by income
A
Induced Consumption
3
Q
Is an economic formula that measures the relationship between income and total consumption of goods and services in the economy
A
Consumption Function
4
Q
Defined as the amount left over from disposable income after deducting consumption expenditure
A
Savings
5
Q
Is when consumption exceeds disposable income
A
Dissaving
6
Q
Is independent of changes in income
A
Autonomous Investment
7
Q
Dependent to the level of income
A
Induced Investment
8
Q
It is when consumption is equal to expenditure
A
Saving-Investment Identity
