8.1 Keynesian Consumption Function household consumption is mainly decided by its disposable income Yd Consumption increases slower than income (0<b<1) C= a+by 友学经济学院8.1 Keynesian Consumption Function ❖household consumption is mainly decided by its disposable income Yd;; ❖Consumption increases slower than income （0<b<1） C = a +bYd