# Consumption Function?

## Answer

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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Q&A Related to "Consumption Function?"
 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
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