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What Is The Consumption Curve?
Consumption curve is a curve showing the relationship between household consumption and income.
As incomes increase and consumption increases, the consumption curve is tilted to the right.
At the same time, due to the role of diminishing marginal propensity to consume, with the increase of income, the rate of consumption increase is becoming slower and slower, so the consumption curve tends to be more and more smooth with the increase of income.
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