Khan Academy Static

If you earn a $1, you might spend some fraction of it. This can then be income for someone else. This can keep going. In this tutorial, we'll explore how the incremental spend per incremental earnings (marginal propensity to consume) and the multiplier effect based on it can drive economic activity.

12493_Mathy_version_of_MPC_and_multiplier_optional_.html

12492_MPC_and_multiplier.html