Question

Write two features of consumption propensity.

Answer 1

Answer:

Consumption function, in economics, the relationship between consumer spending and the various factors determining it. At the household or family level, these factors may include income, wealth, expectations about the level and riskiness of future income or wealth, interest rates, age, education, and family size.

Answer 2

Explanation:

the two features of consumption propensity is APC and MPC

APC: it means average propensity to consume. it is the ratio of consumption and income.

MPC: it means marginal propensity to consume .It is the ratio of change in consumption in relation to Change in income.