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Economy

Marginal propensity to consume tracks spending habits

HERE’S THE INTERESTING PART

If someone hands you an extra dollar, how much of it will you immediately burn on a snack? The marginal propensity to consume mathematically calculates the exact fraction of any additional income that an individual will choose to spend rather than hoard. It proves precisely how likely you are to immediately blow unexpected windfalls.

Marginal propensity to consume tracks spending habits
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