Talk:Marginal propensity to consume

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BetacommandBot 11:30, 6 July 2007 (UTC)

effect of temporary changes on multiplier

Quote; "if a consumer expects a change in income to be permanent, then they have a greater incentive to increase their consumption (Barro and Grilli, p. 417-8). This implies that the Keynesian multiplier should be smaller in response to permanent changes in income than it is in response to temporary changes in income"

Intuitively I would expect the opposite effect. I suppose this is why "smaller" is in italics. Could this be explained, here or in the article? Daniel Bonniot de Ruisselet (talk) 20:06, 25 June 2008 (UTC)

Granted, I just started studying this, but that's what I would think. If MPC(p) = 0.8 while MPC(t) = 0.5., wouldn't M(p) = 5 and M(t) = 2? Gusthemynahbird (talk) 22:25, 4 January 2009 (UTC)

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APC

The term APC is not defined! 91.65.137.141 (talk) 11:38, 29 March 2013 (UTC)

Hardly any of the variables or abbreviations used here are defined. Zyxwv99 (talk) 01:36, 13 July 2014 (UTC)

MPC and the Multiplier

What is the parameter, I? Does the multiplier have any meaning at all? MPC = 1 just means that a household has spent all of its marginal increase in income, which is perfectly legitimate. What does an infinite multiplier mean for this case? Virgil H. Soule (talk) 18:36, 26 April 2013 (UTC)

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