Marginal propensity to consume

Marginal propensity to consume,

Definition of Marginal propensity to consume:

  1. Proportion of a small change in the disposable income that would be spent on consumption instead of being saved. It is computed by dividing the change in consumption by the change in disposable income that caused it.

How to use Marginal propensity to consume in a sentence?

  1. The marginal propensity to consume was something that I really wanted to know about and wanted to actually try out.
  2. You must know if your client has a marginal propensity to consume and figure out if that can help you get a better deal.
  3. In many companies, the marginal propensity to consume often goes towards the petty cash fund, to pay for things like parking meters on business-related errands or special office supplies.

Meaning of Marginal propensity to consume & Marginal propensity to consume Definition