Economics A-Level
Marginal propensity to consume (MPC)
What Marginal propensity to consume (MPC) means in Economics A-Level, as defined for AQA.
Definition of Marginal propensity to consume (MPC)
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Reference: AQA
A determinant of the size of the multiplier effect, where a higher value means less money leaks out at each stage, resulting in a larger final impact.
Topics that use Marginal propensity to consume (MPC)
- 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
- Multiplier effect
- Multiplier process
- Marginal propensity to consume
Using Marginal propensity to consume (MPC) in the exam
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