Economics A-Level
Marginal propensity to consume
What Marginal propensity to consume means in Economics A-Level, as defined for AQA.
Definition of Marginal propensity to consume
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Reference: AQA
The fraction of any additional income that households spend on domestically produced goods and services.
Topics that use Marginal propensity to consume
- Aggregate demand and the level of economic activity (AQA A-Level)
Related terms
- Aggregate demand
- Circular flow
- Circular flow of income
- Inflation
- Leakages and injections
- Marginal propensity to consume (MPC)
- Multiplier effect
- Multiplier process
Using Marginal propensity to consume in the exam
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