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What is marginal propensity

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What is marginal propensity

Posted by Rohit Arya 4 years, 1 month ago

CBSE > Class 12 > Economics

2 answers

Yogita Ingle 4 years, 1 month ago

Marginal propensity to consume is the ratio of the change in consumption expenditure to the change in income level. It shows the changes in consumption expenditure resulting from changes in the level of income.

MPC =∆C/∆Y

MPC = Marginal propensity to consume

∆C = Change in consumption expenditure

∆Y = Change in income level

0Thank You

Lunatic .. 4 years, 1 month ago

Additional unit

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