Question

उपभोग फलन क्या है? उन कारकों की चर्चा करें जिस पर उपभोग फलन निर्भर कर देता है

What is consumption function? Discuss the factors on which the consumption func
अथवा​

Answer 1

The consumption function or the propensity to consume is not static and there are various factors influencing it for a change. Though in the short period, the propensity to consume will not change — as the spending habit of the society docs not change quickly — in a dynamic society, factors will be always operating to make the condition unstable.

We shall discuss some of the important factors that influence the consumption function. Since saving is a complement of consumption, factors influencing consumption will be automatically affecting savings as well.

The causes governing consumption function can be classified into:

• Subjective factors and
• Subjective factors andObjective factors.

The former is called psychological factors by Keynes who lists about eight motives which lead individual to refrain from spending out of their incomes.