Question

ex ante consumption definition

Answer 1

Answer:

Ex Ante consumption is the planned consumption. The proportion of the total additional income of the economy people wish to save as a whole is called the marginal propensity to save (mps). It gives us the ratio of total additional planned savings in an economy to the total additional income of the economy.

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Answer 2

In Economics,Ex ante consumption basically refers to the desired or planned consumption expenditure by the buyers and consumers and not the actual consumption level or expenditure.

Explanation:

Ex-ante consumption indicates the consumption level that is predicted or planned by the consumers which might or might not correspond to their actual consumption level.Now,ex ante or planned consumption level or expenditure evidently depends on various factors such as future expectations about prices of goods and services,future fluctuations in the income level of consumers,potential changes in market conditions,marginal propensity to consume and save,predicted changes in personal situations of consumers and so forth.All these future factors can influence the ex ante consumption decisions of consumers or buyers.