The marginal propensity to consume (MPC), or the ratio of the change in aggregate consumption compared to the change in aggregate income, is a key component of Keynesian macroeconomic theory.

Learn about the marginal propensity to save, what it indicates about a household, and how to calculate a household's marginal ...

Discretionary income is what someone has left over for saving or spending after taxes and living expenses have been paid. A person’s discretionary income is what they have left over from their ...