Finance

MPC Calculator

Marginal propensity to consume.

Calculated Output

MPC 0.8

Step-by-Step Breakdown

1. Values used:

2. Change in consumption = 800 $

3. Change in income = 1,000 $

4. MPC = Change in consumption / Change in income = 800 / 1,000 = 0.8

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Frequently Asked Questions

MPS?

MPS = 1 − MPC (the share saved).