If a household tends to spend a relatively large portion of any income it receives, either the income of the household is low to cater for their needs or their marginal propensity is high.
Marginal propensity to consume (MPC) is a metric used to determine what proportion of additional income a consumer spends on the buying of goods and services to the amount of money saved. Also, if the consumer receives a low income, almost all would be spent and little amount would be saved.
Hence, If a household tends to spend a relatively large portion of any income it receives, either the income of the household is low to cater for their needs or their marginal propensity is high.
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