![]() The following Khan Academy Video explains it all: ![]() ![]() This relates to the idea that increased consumer consumption (more spending) happens ) occurs when there is increased income (after transfers and taxes, the so-called “disposable income”). In the world of Economics, MPC (Marginal Propensity to Consume) is used for describing and quantifying induced consumption. First, I’ll give you the (probably) most relevant though this will always be open to discussion. ![]() There are numerous ways in which the acronym or abbreviation MPC is used, just check out the long list below.
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