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marginal propensity to consume (E2) The change in consumption resulting from increasing income by one unit. For example, if all the additional income is consumed, the marginal propensity to consume (MPC) is 1; if only one-half, the MPC is 0.5. This measure is essential in CONSUMPTION FUNCTION and MULTIPLIER analysis. Consumer research shows that MPCs are usually lower for higher income groups.
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<strong>Write-off</strong> – A loan amount for which there has been a total cessation of collection activity.
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