Marginal Propensity to Consume Calculator



Marginal Propensity to Consume Calculator helps calculating the Marginal Propensity to Consume.



What is Marginal Propensity to Consume?

In economics, Marginal Propensity to Consume (MPC) refers to the proportion of an aggregate raise in pay that a consumer spends on consumption of goods and services rather than savings.

Marginal Propensity to Consume is a component of Keynesian macroeconomic theory.



The Formula of Marginal Propensity to Consume

The basic formula of the Marginal Propensity to Consume is as follows:

Marginal Propensity to Consume = change in Consumption / change in income



Example of Marginal Propensity to Consume

Suppose you receive an additional 10,000 dollars in your salary, and as a result you decide to consume an additional 7,000 dollars, your Marginal Propensity to Consume is 0.7 (7,000 dollars change in consumption divided by 10,000 dollars change in income).



Marginal Propensity to Consume Calculator











Suppose you receive an additional 10,000 dollars in your salary, and as a result you decide to

to consume an additional 1,000 dollars, your marginal propensity to consume is 0.1, and your marginal propensity to save is 0.9.

to consume an additional 2,000 dollars, your marginal propensity to consume is 0.2, and your marginal propensity to save is 0.8.

to consume an additional 1,000 dollars, your marginal propensity to consume is 0.3, and your marginal propensity to save is 0.7.

to consume an additional 1,000 dollars, your marginal propensity to consume is 0.4, and your marginal propensity to save is 0.6.

to consume an additional 1,000 dollars, your marginal propensity to consume is 0.5, and your marginal propensity to save is 0.5.

to consume an additional 1,000 dollars, your marginal propensity to consume is 0.6, and your marginal propensity to save is 0.4.

to consume an additional 1,000 dollars, your marginal propensity to consume is 0.7, and your marginal propensity to save is 0.3.

to consume an additional 1,000 dollars, your marginal propensity to consume is 0.8, and your marginal propensity to save is 0.2.

to consume an additional 1,000 dollars, your marginal propensity to consume is 0.9, and your marginal propensity to save is 0.1.

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