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    marginal propensity to consume

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    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 9, 2019, 11:52 pm ad1c9bdddf
    https://brainmass.com/economics/expenditure-multipliers/marginal-propensity-to-consume-270627

    Solution Summary

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

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