what is marginal propensity to consume in simple terms 
the marginal propensity to consume measures the degree to which a consumer will spend or save in relation to an aggregate raise in pay or to put it another way if a person gets a boost in income what percentage of this new income will they spend often higher incomes express lower levels of marginal propensity to consume because consumption needs are satisfied which allows for higher savings by contrast lower income levels experience a higher marginal propensity to consume since a higher percentage of income may be directed to daily living expenses 