Induced consumption

Induced consumption

Induced consumption is a term used to describe consumption expenditure by households on goods and services which varies with income. Such consumption is considered "induced" by income when expenditure on these consumables varies as income changes.

For example, expenditure on a consumable that is considered a "normal good" would be considered to be "induced".

"Induced consumption" is, by definition, the opposite of "autonomous consumption".

ee also

* Consumption (economics)
* Consumption function


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