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3:45
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Quickonomics
How to Calculate Marginal Propensity to Consume
Marginal propensity to consume (MPC) is defined as the share of additional income that a consumer spends on consumption. That means it describes the percentage of a pay raise consumers spend on buying goods and services instead of saving. We can calculate the marginal propensity to consume by following a simple three-step process. 1 ...
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