--- Doug Henwood <[EMAIL PROTECTED]> wrote: The MPC was something like 104%measured over the whole cycle. It's been something like 99% since the early-2001 peak.
What does MPC stand for?
Marginal propensity to consume. The percentage of growth in income which is consumed. For example if your income in year 1 was 10,000 and your consumption 9,000, and in year 2 it was 11,000 and consumption 10,200, your MPC would be computed as:
income growth: 11,000-10,000 = 1,000 consumption growth: 10,200-9,000 = 1,200 MPC = 1,200/1,000 = 1.2 or 120%.
Doug
