MPC

• what is MPC?

  increase in consumption following an increase in income 
• Mps?

  The increase in savings following an increase in income 
• MPC formula?

  Change in consumption divided by the change in income.
• MPS formula?

  Change in saving divided by the change in income.
• Why are MPC and MPS important?

  size of multiplier depends on how much injection into circular flow