People spend a fraction of total disposable income {average propensity to consume} (APC) and save a fraction {average propensity to save} (APS). APC + APS equals one, because people must spend or save income.
People consume a fraction of disposable-income increases {marginal propensity to consume, income} (MPC) and save a fraction {marginal propensity to save, income} (MPS). For people, MPC + MPS equals one, because people must spend or save income.
6-Economics-Macroeconomics-Government Actions-Monetary Policy
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Date Modified: 2022.0225