Marginal Propensity To Consume (MPC) Calculation
(Step by step calculation)
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Marginal Propensity To Consume (MPC) Calculator
MPC mentions the increase in consumer spending owing to the increase in disposable income.
Step by step calculation
Marginal Propensity to Consume(MPC) Formula 1
MPC = C1 / C2
Where,
MPC is Marginal Propensity to Consume
C1 is Change in Consumer Spending
C2 is Change in Income
Marginal Propensity to Consume (MPC) Formula 2
Marginal Propensity to Consume (MPC) = ΔC / ΔI
Further, the MPC formula can be derived into
Marginal Propensity to Consume (MPC) = (C1 - C0) / (I1 - I0)
C0 = Initial Consumer Spending
C1 = Final Consumer Spending
I0 = Initial Disposable Income
I1 = Final Disposable Income
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![](/img/adv.png)