MPC measures the relationship between wage increases and consumer spending. It is important for assessing consumption habits and the impact on the economy. Companies and governments use it to encourage spending or saving, depending on the economic situation. The marginal propensity to consume, also known simply as MPC, is an economic theory that measures the […]

The marginal propensity to consume measures the relationship between wage earnings and the consumption of goods and services. It is important for evaluating consumer spending habits and determining the impact on the economy. Companies and governments use it to encourage spending and manage the economy. The marginal propensity to consume, also known simply as MPC, […]