Consumption function

Consumption function

Bachelor of Business Studies (BBS) — Second Year

Subject: Macroeconomics for Business (MGT 209)

Unit 4: Keynesian Macroeconomics

Academic Year: 2083/84

Topic Objectives

After studying this topic, students should be able to:

• Explain the scope and key elements of consumption function.
• Explain the economic model or issue, identify its assumptions and interpret the relevant diagrams, calculations or dated evidence.

Curriculum Scope

• Concept
• Psychological law of consumption
• Technical attributes
• Determinants

Detailed Microsyllabus

1. Consumption function

   1. Consumption as a function of income.
   2. Autonomous and induced consumption.
   3. Psychological law of consumption.

2. Attributes and determinants

   1. Average and marginal propensity to consume.
   2. Interpret slope and intercept.
   3. Income, expectations, wealth and other relevant determinants.

---

Curriculum reference: Tribhuvan University, Faculty of Management, revised four-year BBS curriculum, PDF pages 24-26.

Source note: The curriculum scope above is retained from the existing TU syllabus breakdown. The numbered study subtopics are editorial elaborations for teaching and study, rather than a separately issued TU syllabus. Unit or component allocations apply at their stated level; no separate topic hours or marks are assigned here. Nepalese current-status discussions should identify the reporting period and use dated official publications, such as Nepal Rastra Bank reports, rather than undated figures.