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MPC is the proportion of additional income that an individual consumes. For example, if a household earns one extra dollar of disposable income, and the marginal propensity to consume is 0.65, then of that dollar, the household will spend 65 cents and save 35 cents.
The Model Penal Code (MPC) is a model act designed to stimulate and assist U.S. state legislatures to update and standardize the penal law of the United States. [ 1 ] [ 2 ] The MPC was a project of the American Law Institute (ALI), and was published in 1962 after a ten-year drafting period. [ 3 ]
80/20 – According to the Pareto principle, ... – Discount; DMA – Direct market ... MPC – marginal propensity to consume;
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The use of the term MPC here is a reference to the MPC of a country (or similar economic unit) as a whole, and the theory and the mathematical formulae apply to this use of the term. However, individuals have an MPC, and furthermore MPC is not homogeneous across society. Even if it was, the nature of the consumption is not homogeneous.
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The marginal propensity to save (MPS) is the fraction of an increase in income that is not spent and instead used for saving.It is the slope of the line plotting saving against income. [1]