Difference between revisions of "Marginal propensity to consume"
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:[[Marginal propensity to consume]] (MPC). The share of an additional dollar of income that goes to | :[[Marginal propensity to consume]] (MPC). The share of an additional dollar of income that goes to | ||
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| + | According to [[Macroeconomics by Mankiw (7th edition)]], | ||
| + | :[[Marginal propensity to consume]] ([[MPC]]). The increase in consumption resulting from a one-dollar increase in disposable income. | ||
[[Category: Economics]][[Category: Articles]] | [[Category: Economics]][[Category: Articles]] | ||
Latest revision as of 17:40, 2 July 2020
Marginal propensity to consume (MPC) is the share of an additional dollar of income that goes to consumption.
Definition
According to Principles of Economics by Timothy Taylor (3rd edition),
- Marginal propensity to consume (MPC). The share of an additional dollar of income that goes to
consumption. According to Macroeconomics by Mankiw (7th edition),
- Marginal propensity to consume (MPC). The increase in consumption resulting from a one-dollar increase in disposable income.
