What is the role of marginal proponsity to conssume in decision making?
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BREAKING DOWN Marginal Propensity To Consume (MPC) The marginal propensity to consume is equal to ΔC / ΔY, where ΔC is change in consumption, and ΔY is change in income. ... According to Keynesian theory, an increase in production increases consumers' income, and they will then spend more.
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