I went to the lecture tab and found this on MPC and MPS: If we are overspenders, then our consumption exceeds our income, seeing minus saving! The more income we have, the more we can consume and the more we can save. The money we tend to spend out of additional income is called the Marginal Propensity to Consume, MPC. The money we tend to save out of additional income is called the Marginal Propensity to Save, MPS.
So with MPC, this is where we are spending more than our income.
Teacher question/follow up:
Take a look at the components of GDP expenditure approach over the past 5 years and share this number with us in class? This will help substantiate your post.
Can you help me with the teacher question/follow up?
The data needed is for the US© BrainMass Inc. brainmass.com April 1, 2020, 4:58 pm ad1c9bdddf
The components of GDP expenditures approach over the past five years is determined.