What Is Marginal Propensity To Consume?

Marginal propensity to consume refers to the proportion of households' consumption in increasing income.

Among them, Delta Y represents the increase in household income, while Delta C is the increase in the consumption of income. Marginal propensity to consume indicates the distribution of income momentum between consumption changes and savings changes. Generally speaking, the marginal propensity to consume is always greater than 0 and less than 1, that is 0