The fraction of a change in disposable income that is spent on consumption; the change in consumption divided by the change in disposable income that caused it.
The ratio of a change in consumer expenditure to a change in disposable income.
the amount by which consumption increases when disposable income increases by a dollar
The marginal propensity to consume (MPC) is the proportion of the last pound earned that is spent on consumption. For example, if a person earns £1 more and consumes 60p of it, then the MPC is 0.6.
The percentage of new or added income that is consumed.
Is the part of the last dollar of disposable income that would be spent on additional consumption.
The proportion of income which is consumed per extra unit earned
Marginal propensity to consume is the fraction of an increase in disposable income that is consumed. Mathematically, it is defined as the change in consumption divided by the change in disposable income.
The marginal propensity to consume (MPC) refers to the increase in personal consumer spending (consumption) that occurs with an increase in disposable income (income after taxes and transfers). For example, if a household earns one extra dollar of disposable income, and the marginal propensity to consume is 0.65, then of that dollar, the family will spend 65 cents and save 35 cents.
