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Frequently Asked Questions

How the level of MPC is determined?

The level of MPC used for an MPC connection is automatically determined by a negotiation between the partner nodes. You can control the level used by coding the MPCLEVEL operand on the TRLE definition statement that defines the MPC connection. If both partner nodes support HPDT MPC, HPDT MPC is automatically used.

Can the MPC be greater then one?

The MPC can be more than one if the subject borrowed money or dissaved to finance expenditures higher than their income. The MPC can also be less than zero if an increase in income leads to a reduction in consumption (which might occur if, for example, the increase in income makes it worthwhile to save up for a particular purchase)

What is the value of MPC when MPs is zero?

The value of MPC is equal to unity (i.e., 1) when MPS is zero since whole of disposable income is spent on consumption. Again, value of MPC cannot he greater than 1 because change in consumption (i.e., additional consumption) cannot be more than change in income (i.e., additional income).


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