Explore BrainMass

marginal propensity to consume

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 August 22, 2018, 3:10 am ad1c9bdddf

Solution Summary

A thorough examination of the marginal propensity to consume is embedded.