Marginal propensity to consume (MPC) is the proportion of a raise that is spent on the consumption of goods and services, as opposed to being saved.

The marginal propensity to save is the inverse measurement of the propensity to consume. It refers specifically to the amount saved against the extra income available across a population.

Marginal propensity to consume and the marginal propensity to save refer to the portion of each extra dollar of a household’s income that is consumed or saved.

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 ...

Now assume a very simple consumption function — a two-step “curve” — based on MPC (and marginal utility of consumption) thinking: propensity to consume for those holding more than $500,000 ...

A household's propensity to consume depends upon a confidence in long-term financial prospects, which, in many circumstances, a temporary tax cut does little to improve.

The marginal propensity to consume out of the permanent component of both the head's and wife's labor income is .9, a result consistent with Friedman's for aggregate income, and implying that growing ...