marginal propensity to consume


An economic term for the amount that consumption changes in response to an incremental change in disposable income. Equal to the change in consumption divided by the change in disposable income that produced the consumption change.

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The marginal propensity to consume was observed to be significant for specific goods as the volatile economy affected life greatly.

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I had to figure out exactly what marginal propensity to consume meant, so I asked my brother and he told me it had to do with disposable income.

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We had done a long term study on the marginal propensity to consume and found some rather fascinating details that were sure to be of academic interest to some.

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marginal profit average propensity to consume