The marginal propensity to consume (MPC) is the fraction of a change in disposable income that is consumed. For example, if disposable income rises by $100, and $65 of that $100 is consumed, the MPC is 65%. Restated, the marginal propensity to save is 35%.
The marginal propensity to consume (MPC) is the fraction of a change in disposable income that is consumed For example if disposable income rises by $100 and $65 of that $100 is consumed the MPC is 65% Restated the marginal propensity to save is 35%