3 ms·
High MPC is just a low savings %. Mostly relevant for governments and public policy rather than businesses. Still, if a business is a big enough part of the eco
by barchar 1y ago
High MPC is just a low savings %. Mostly relevant for governments and public policy rather than businesses. Still, if a business is a big enough part of the economy it means workforce expansion involving lower wage jobs may "cost less" than it appears; if Amazon builds a new warehouse the workers might spend some of their paycheck at Amazon.
Decreased inequality with the same level of consumption would mean higher velocity of money, and thus higher total tax liabilities b