APC/APS and MPC/MPS (1 Viewer)

[wgy182]

Hey guys,
Does low income earners have a higher APC? And high income earners have a higher MPC? Or am I completely wrong?


Cheers

 

[trungduong12]

Low income earners have higher MPC , for every extra $ they have, they most likely to spend it, whether high income earners will save (lower MPC)

Correct me if iam wrong !!




Sent from my iPhone using Tapatalk

 

[Drifting95]

Typically, the higher the income, the lower the MPC, because as wealth increases, so does the ability to satisfy needs and wants, so each additional dollar is less likely to go toward additional spending.

 

[Evertone]

The syllabus makes a big deal of this point.

"in the economy as a whole, as income rises the level of saving increases" pg 18.

Don't you just love the syllabus.