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Consumption Function
The consumption function is an economic formula that represents the relationship between total consumption and gross national income, predicting consumer spending.
Marginal Propensity to Consume
The ratio of change in consumption to the change in disposable income, indicating how much income will be spent rather than saved.
Investment
Investment involves allocating resources, such as capital or time, in the expectation of generating a profit or benefit in the future.
Interest Rates
A charge, calculated as a percentage of the principal, demanded by a lender from a borrower for assets' usage.
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