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Assume the First Bank of Townsville makes a loan of $2,500.This loan will
Consumption Function
An economic formula representing the relationship between total consumption and gross national income, indicating how changes in income affect spending.
Saving
The portion of income not spent on current expenditures or consumption, often put aside for future use or investment.
Disposable Income
The amount of money a household has available for spending and saving after income taxes have been accounted for.
Consumption Function
A macroeconomic concept that describes the relationship between total consumption and gross national income.
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