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Change in income MPC = C

0.6
Increase In Government Expenditure (G) 25 15
First Round 15 9
Second Round 9 5.4

Total 62.5 37.5

MPC Marginal Propensity to Consume (MPC)


MPC Marginal Propensity to Save (MPS)
MPC Marginal Propensity to Import (MPM)
MPC Marginal Propensity to Tax (MPT)
MPS=S MPM =M MPT=T
0.2 0.05 0.15
5 1.25 3.75
3 0.75 2.25
1.8 0.45 1.35

12.5 3.13 9.38

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