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Economics miscellaneous

  1. Consumptions function refers to
    1. relationship between income and employment
    2. relationship between savings and investment
    3. relationship between input and output
    4. relationship between income and consumption
Correct Option: D

The Consumption function is a single mathematical function used to express consumer spending. It was developed by John Maynard Keynes and detailed most famously in his book The General Theory of Employment, Interest, and Money. It is made up of autonomous consumption that is not influenced by current income and induced consumption that is influenced by the economy's income level.



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