Marginal propensity to consume (MPC)
The marginal propensity to consume is a concept in the economic circulation diagram. The marginal propensity to consume is the proportion of the income that goes to consumption.
A higher marginal propensity to consume in the community will create a higher economic growth in the economy when the injections increases.
Updated
4/25/2013
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marginal propensity to consume, macro theory, economics