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If the marginal propensity to consume were 100 percent, there would be no investment, and, soon, no income.
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As a country with a low domestic propensity to consume, China ramped up its export machine to meet that demand.
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Those in upper-income groups with incomes above a million dollars a year tend to have a lower marginal propensity to consume.
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The State will have to exercise a guiding influence on the propensity to consume partly through its scheme of taxation, partly by fixing the rate of interest .
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You could compute a multiplier, which was simply the reciprocal of one minus the marginal propensity to consume, or, even more simply, the reciprocal of the marginal propensity to save.
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To the extent that high oil prices played a role in the recessions of the early 1980s and 2008-09, the main reason is that oil-producing countries tend to have a lower marginal propensity to consume their income, denting global demand.
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These transfers tend to shift disposable income from those with a higher propensity to save to those with a higher tendency to consume.
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