Suppose the government increases education spending by $20 billion. How much additional consumption will this increase cause? Would a millionaire and a poor person have the same MPC? Show your work.© BrainMass Inc. brainmass.com October 16, 2018, 11:49 pm ad1c9bdddf
A thorough examination of the marginal propensity to consume is embedded.
Marginal Propensity Consumption
What does it mean to say that the marginal propensity to consume increases with income? Is this typically the case? Explain.View Full Posting Details