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Consumption expenditures
divided by income (or by disposable income).
Findings of statistical
investigations which showed that the proportion of income consumed tends to
diminish across the income distribution from lower to higher incomes at a
point in time.
The Ando-Modigliani-Brumberg
theory that consumption spending depends on expected life cycle total
resources rather than on the income of the current year only.
The function tracing
the relationship between
consumption expenditures and private disposable income as it emerges from
points widely separated in time.
The coefficient of
disposable income in the consumption expenditure function-4C/4Yd.
The peak income achieved in
the past. In J. S. Duesenberry's consumption theory, past peak income
sustains the average propensity to consume somewhat as the economy moves
into recession.
The component of actual
income regarded by spending units as reflecting their basic earning
potential, which arises from their property net worth and personal
attributes. It is the key concept in Milton Friedman's consumption theory.
J. S. Duesenberry's theory
that in the long term the proportion of income a household consumes depends
on its income relative to the incomes of other households rather than on
the absolute level of its income.
A tendency toward a chronic
shortfall of aggregate demand in the absence of government intervention to
stimulate demand.
The function denoting the relationship
between consumption expenditures and disposable income in the short term,
as during a phase of the business cycle.
Results of studies that
showed a tendency for the ratio of aggregate consumption expenditure to
disposable income (the average propensity to consume) to remain constant,
viewed at points widely separated in time.
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