Induced consumption is consumption expenditure by households on goods and services that varies with income. Such consumption is considered induced by income when expenditure on these consumables varies as income changes. Induced consumption contrasts with autonomous consumption, which is expenditures that do not vary with income.
For example, expenditure on a consumable that is considered a normal good would be considered to be induced.
Read more about Induced Consumption: Some Ways in Which Induced Consumption Occurs
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