marginal propensity to consume

Popular Terms
Proportion of a small change in the disposable income that would be spent on consumption instead of being saved. It is computed by dividing the change in consumption by the change in disposable income that caused it.

Use 'marginal propensity to consume' in a Sentence

You must know if your client has a marginal propensity to consume and figure out if that can help you get a better deal.
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The marginal propensity to consume was something that I really wanted to know about and wanted to actually try out.
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In many companies, the marginal propensity to consume often goes towards the petty cash fund, to pay for things like parking meters on business-related errands or special office supplies.
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