Respuesta :
The consumption function shows the relationship between consumption spending and Gross national income.
What is a consumption function?
- A British economist, John Maynard Kenes introduced the consumption function.
- It is an economic formula that shows the relationship between consumption spending and Gross national income.
What is Gross national income?
- It was earlier known as the Gross national product.
- It is like an alternative to the GDP.
- It refers to the total amount of money earned by the people of a nation and the businesses.
- The formula used to calculate the GNI is represented as: GNI = C + I + G + X + NFFI
- It is important to know the GNI because the government needs to be aware about the economics of the nation in order to implement and make policies.
To learn more about the consumption spending visit : https://brainly.com/question/14318327?
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