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The Marginal Propensity to Consume (MPC): How One Number Explains Spending Behavior
In this explainer, we break down one of the most important concepts in macroeconomics: the Marginal Propensity to Consume (MPC). Step by step, we show how economists calculate the MPC using simple data, starting from disposable income and moving through marginal changes in income and consumption. We explain what the MPC really measures, how it ...
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