Share
Explore BrainMass

What does MPC mean?

The Federal Government increases spending by $1 billion to develop a new fighter jet. If the MPC in the economy is 0.1, what will be the overall spending effect of the economy?

What does MPC mean?

Solution Preview

MPC or marginal propensity to consume is An economic term for the amount that consumption changes in response to an incremental change in disposable ...

Solution Summary

The Federal Government increases spending by $1 billion to develop a new fighter jet. If the MPC in the economy is 0.1, what will be the overall spending effect of the economy?

$2.19