Marginal propensity to consume (MPC)

2 videos
If you earn a $1, you might spend some fraction of it. This can then be income for someone else. This can keep going. In this tutorial, we'll explore how the incremental spend per incremental earnings (marginal propensity to consume) and the multiplier effect based on it can drive economic activity.

MPC and multiplier

VIDEO 9:53 minutes
Introduction to the marginal propensity to consume and the multiplier

Mathy version of MPC and multiplier (optional)

VIDEO 9:02 minutes
Generalizing what we did in the last video with more math