marginal propensity to consume
noun[S]
ukus(abbreviationMPC)ECONOMICS
thedegreeto whichpeoplewillchangehow much theyconsumemore inrelationto achangeinincome
Examplesofmarginal propensity to consume
marginal propensity to consume
The extent of the multiplier effect in increasing domestic business activity is dependent upon themarginalpropensitytoconsumeand marginal propensity to import.
From
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Wikipedia
This example is from Wikipedia and may be reused under a CC BY-SA license.This idea came to replace the perception that people had amarginalpropensitytoconsumeand therefore current consumption was tied to current income.
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Wikipedia
This example is from Wikipedia and may be reused under a CC BY-SA license.Investment, in its turn, depends upon consumption, and consumption depends upon the marginalpropensitytoconsume(savings rate) across all income categories.
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Wikipedia
This example is from Wikipedia and may be reused under a CC BY-SA license.Also, marginal propensity to save is opposite ofmarginalpropensitytoconsume.
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Wikipedia
This example is from Wikipedia and may be reused under a CC BY-SA license.It could not explain the fact that the long-run average propensity to consume seemed to be roughly constant despite themarginalpropensitytoconsumebeing much lower.
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Wikipedia
This example is from Wikipedia and may be reused under a CC BY-SA license.That is, themarginalpropensitytoconsume(mpc) is less than one, so that each round some extra income goes into saving, leaking out of the cumulative process.
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Wikipedia
This example is from Wikipedia and may be reused under a CC BY-SA license.As nominal wages increase, people'smarginalpropensitytoconsumestays the same, but they are able to purchase more things at the same percentage of marginal propensity.
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Wikipedia
This example is from Wikipedia and may be reused under a CC BY-SA license.For themarginalpropensitytoconsume, the natural space of possible values is [0, 1].
From theCambridge English Corpus
Because themarginalpropensitytoconsumeis less than unity, a permanent terms of trade worsening is then followed by a negative flow of saving.
From theCambridge English Corpus
Older generations have a largermarginalpropensitytoconsumethan younger ones.
From theCambridge English Corpus
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