Relation ship between apc and mpc. Explain the role of mpc on investment multiplier
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Explanation:
The marginal propensity to consume (MPC) is the proportion of an aggregate raise in pay that a consumer spends on the consumption of goods and services, as opposed to saving it. Marginal propensity to consume is a component of Keynesian macroeconomic theory and is calculated as the change in consumption divided by the change in income. MPC is depicted by a consumption line, which is a sloped line created by plotting change in consumption on the vertical "y" axis and change in income on the horizontal "x" axis.
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