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5 votes
Induced consumption is equal to saving when consumption equals disposable income. consumption when disposable income is zero. consumption caused by an increase in disposable income. dissaving when disposable income is greater than zero.

1 Answer

6 votes

Induced consumption is consumption caused by an increase in disposable income.

Basically, when an increase in income is the thing that causes increased buying/consumption, you would say that the increase in income induced the change in consumption.

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User Anibalajt
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