Patrick Foto / Getty Images Marginal propensity to consume (MPC) is the proportion of extra income a person spends instead of saving after an increase in income. The term and its formula are ...

The marginal propensity to consume (MPC), or the ratio of the change in aggregate consumption compared to the change in aggregate income, is a key component of Keynesian macroeconomic theory.

Compared with pre-COVID estimates, the marginal propensity to consume out of housing wealth is substantially higher, which, together with large gains in housing prices, made the wealth effect a key ...

Joshua Hausman ’05, associate professor of economics and public policy at the University of Michigan, delivered a talk on how the ...