Equally important is the fact that the marginal propensity to consume modifies income velocity, money demand and consumption, even as the interest rate is inversely related to money demand.
What does MPC stand for?
MPC stands for Marginal Propensity to Consume
This definition appears very frequently
See other definitions of MPC
We have 628 other meanings of MPC in our Acronym Attic
- Manchester Parish Council (UK)
- Manila Press Club
- Manitoba Pioneer Camp (Canada)
- Manitoba Pork Council
- Manpower Personnel Center
- Manu Pest Control (Delhi, India)
- Manual do Piloto Civil
- Manufacturer's Product Code
- Manufacturing Planning and Control
- Marginal Private Costs
Samples in periodicals archive:
Especially the poor households were the most vulnerable to increasing expenditures on food since they were already facing a high marginal propensity to consume out of their incomes.
Further, we learn that the marginal propensity to consume food out of food stamp income is close to the marginal propensity to consume food out of cash income.
To this end, regression analysis is performed (using ordinary least squares and a modified Cragg method where necessary) to examine differences in marginal propensity to consume and income elasticity.
Poterba (2000) has suggested that the marginal propensity to consume out of wealth may have declined in the 1990s.
Current estimates of the marginal propensity to consume out of stock wealth, that is, the "wealth effect" often described in the popular press, range from .
The estimated coefficient, h, on wealth, is described as the marginal propensity to consume out of wealth and is interpreted as the increase in consumer spending associated with an increase in wealth.
Thus, the consumption equation incorporates an estimated higher marginal propensity to consume out of social security benefits (as well as other transfer income) than out of after-tax labor income.