19 Nov 2021
Problem 23
Page 890
Section: CRITICAL THINKING QUESTIONS
Chapter D: The Expenditure-Output Model
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19 Nov 2021
Introduction
In economics, the marginal propensity to consume (MPC) is defined as the proportion of an aggregate raise in pay that a consumer spends on the consumption of goods and services, as opposed to saving it. Marginal propensity to consume is a component of Keynesian macroeconomic theory and is calculated as the change in consumption divided by the change in income.
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