Re: Estimating the surplus\Doug's question

[Mike Ballard <swillsqueal@xxxxxxxxxxxx>]

--- Doug Henwood <dhenwood@xxxxxxxxx> wrote:
> 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%.

Thanks Doug!

Mike B)

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Where parents do too much for their children,
the children will not do much for themselves.

ELBERT HUBBARD (1856-1915)
The Note Book of Elbert Hubbard
ed., Elbert Hubbard II
p. 193

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