THEORIES OF CONSUPMTION INTRODUCTION Here understudies are acquainted with the different hypotheses of utilization. The understudies are presented outfitted with an unmistakable examination of utilization consumption speculations. The accompanying speculations are streamlined for simple comprehension of the understudy; outright pay theory, relative pay speculation, long-lasting pay speculation, and life cycle pay speculation. 2.0 OBJECTIVES Toward the finish of this module understudies ought to have the option to: i. Understand the speculations of utilization; ii. Differentiate among all utilization speculations; iii. Compare the speculations; and iv. Determine those factors that impacts utilization. CONTENTS AN INTRODUCTION TO THE THEORIES OF THE CONSUMPTION FUNCTION Keynes in his overall hypothesis proposed his mental law of utilization which expresses that when pay increments utilization consumption likewise increments yet by a more modest sum. At the end of the day, the utilization use increments (or diminishes) with increment or (decline) in pay however not relatively. This idea of disproportional utilization capabilities suggests that in the short-run normal and negligible penchants to consume are not equivalent. Maybe MPC < APC, and that the minor penchant to consume is positive yet not as much as solidarity (0