INDUCED CONSUMPTION: Household consumption expenditures that depend on income or production (especially disposable, national income, or gross national product). An increase in household disposable income triggers an increase in induced consumption expenditures. Induced consumption is graphically depicted as the slope of the consumption or propensity-to-consume line, and are measured by the marginal propensity to consume. The induced relation between income and consumption, as well as other induced expenditures, form the foundation of the multiplier effect triggered by changes in autonomous expenditures.

     See also | consumption expenditures | disposable income | gross domestic income | slope | consumption line | marginal propensity to consume | autonomous consumption | induced expenditure | autonomous expenditure | induced saving | multiplier | accelerator |

INDUCED CONSUMPTION, AmosWEB GLOSS*arama, http://www.AmosWEB.com, AmosWEB LLC, 2000-2026. [Accessed: June 16, 2026].

Additional information on this term can be found at:

WEB*pedia: induced consumption

Back to the GLOSS*arama

The difference between the face value, or value in exchange, of money and the cost of producing the money. This seigniorage is effectively the profit government generates from producing currency--printing paper bills or minting metal coins. That is, government effectively "makes money" by making money.

Complete Entry | Visit the WEB*pedia

Today, you are likely to spend a great deal of time strolling through a department store seeking to buy either a rechargeable battery for your computer or shoe laces for your snow boots. Be on the lookout for crowded shopping malls.
Your Complete Scope

This isn't me! What am I?

-- Mother Teresa of Calcutta, humanitarian

User Feedback