# Consumption Function?

The consumption function is the math formula created by John Maynard Keynes, a famed economist. The formula, which is C=A+MD, helps show consumers the relationship between their disposable income and their spending. This is what drives an economy. C stands for consumer spending, the A stands for autonomous consumption, the M stands for marginal propensity to consume, and D is the real disposable income. Autonomous consumption is money spent even if there was no income, while M is when income begins to vary.
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 1. Find the autonomous spending, the marginal propensity to consume and real disposable income. Autonomous spending is how much consuming would still exist if income was zero. The http://www.ehow.com/how_7233048_calculate-consumpt...
 The consumption function was developed by John Maynard Keynes. The function was outline in his book titled 'The General Theory of Employment, Interest and Money' http://wiki.answers.com/Q/Who_developed_the_consum...
 Mathematical relationship between level of consumption and level of income. It shows that consumption is greatly influenced by income. http://www.answers.com/topic/consumption-function
 He consumption function is a mathematical formula laid out by famed... http://www.chacha.com/question/what-is-consumption...
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