Clay Halton was a Business Editor at Investopedia and has been working in the finance publishing field for more than five years. He also writes and edits personal finance content, with a focus on ...

The marginal propensity to save and the marginal propensity to consume are both measurements relative to the amount of expendable income in the budget of individuals and businesses alike. The ...

This study deals with statistical principles and methods of deriving estimates of the marginal propensity to consume, from time series of total consumption, income, and investment. It is shown that ...

The marginal propensity to consume (MPC), or the ratio of the change in aggregate consumption compared to the change in aggregate income, is a key component of Keynesian macroeconomic theory. In the ...

Economists have long argued over whether tax cuts stimulate the economy efficiently and, if they do, which kind of tax cut stimulates consumption best. Ironically, the debate begins with the proposal ...

Discretionary income is also important to economists because it is used in the calculation of the marginal propensity to consume (MPC) and the marginal propensity to save (MPS), two important ...