marginal propensity

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.

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Social Sciences>Economics>Macroeconomics>Government Actions>Monetary Policy>Propensity

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Date Modified: 2022.0224