the marginal propensity to consume (mpc) is equal to the ratio of
Marginal propensity to consume The marginal propensity to consume is measured as the ratio of the change in consumption to the change in income, thus giving us a figure between 0 and 1. The MPC can be more than one if the subject borrowed money or dissaved to finance expenditures higher than their income. The MPC can also be less than zero if an increase in income leads to a reduction in consumption (which might occur if, for example, the increase in income makes it worthwhile to save up for a particular purchase). One minus the MPC equals the marginal propensity to save (in a two sector closed economy), which is crucial to Keynesian economics and a key variable in determining the value of the multiplier.
Investment To invest is to allocate money (or sometimes another resource, such as time) in the expectation of some benefit in the future, for example, investment on durable good such as real estate for service industry and factory for manufacturing product development, which are two common types for micro-economic output in modern economy. Investment on Research and Development occurs mainly on the innovation of consumer products.
Pi Ï€ is commonly defined as the ratio of a circle's circumference C to its diameter d:[9]
Refrigerant In order from the highest to the lowest potential of ozone depletion are: Bromochlorofluorocarbon, CFC then HCFC.