*noun*; in Keynesian economics, the rate at which aggregate consumption rises in response to a rise in national income.
For example, suppose the marginal propensity to consume (MPC) is 0.95. If the national income is 100 billion dollars, and it rises 10%, then consumption will rise by 9.5 billion, and saving will rise by 0.5 billion.
If this theory is correct, then an expanding economy will suffer insufficient demand for its own output, and a recession will be inevitable.
This is why national governments respond to recessions with deficit spending: they are trying to counteract the MPC's effect on aggregate demand, and bring it in line with potential output.
For example, suppose the marginal propensity to consume (MPC) is 0.95. If the national income is 100 billion dollars, and it rises 10%, then consumption will rise by 9.5 billion, and saving will rise by 0.5 billion.
If this theory is correct, then an expanding economy will suffer insufficient demand for its own output, and a recession will be inevitable.
This is why national governments respond to recessions with deficit spending: they are trying to counteract the MPC's effect on aggregate demand, and bring it in line with potential output.
Not only is the marginal propensity to consume weaker in a wealthy community, but, owing to its accumulation of capital being already larger, the opportunities for further investment are less attractive...
J.M. Keynes, *The General Theory of Employment, Interest, and Money* (1936), Ch.3
J.M. Keynes, *The General Theory of Employment, Interest, and Money* (1936), Ch.3
by Abu Yahya March 3, 2009
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Get the consume the child mug.To bring to completion or fruition; conclude: consummate a business transaction.
To realize or achieve; fulfill: a dream that was finally consummated with the publication of her first book.
To complete (a marriage) with the first act of sexual intercourse after the ceremony.
To fulfill (a sexual desire or attraction) especially by intercourse.
To realize or achieve; fulfill: a dream that was finally consummated with the publication of her first book.
To complete (a marriage) with the first act of sexual intercourse after the ceremony.
To fulfill (a sexual desire or attraction) especially by intercourse.
by mr.wanker November 9, 2003
Get the consummate mug.A parasite that contributes nothing to the network and is only looking for ways to stay on the payroll. This is the individual at the burger joint that asks “do you want fries with that?” The network Consultant is constantly looking for useless network tweaks to justify his presence at a customer site. Be especially weary of the Euro-trash no talent hack type; this character dazzles senior management with a ridiculous accent all the while unraveling the solid network that’s in place. Network consultants never look at a network as a whole, but only analyze bits and pieces of it. In this manner they always have work do to since the last project they completed broke some other part of the network.
I’m gonna have to give nickel blow jobs in the street to get my self respect back after taking this network consultant job.
If that network consultant was on fire; I wouldn’t piss on him.
If that network consultant was on fire; I wouldn’t piss on him.
by network dog February 14, 2006
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Consumption is an old name for tuberculosis (TB) that describes how the illness wastes away or consumes its victims.
by HayCat128 September 7, 2009
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