The MPC (Marginal Propensity for Consumption) and Economic Stimulus

The other day, I saw a recent video in Khan Academy’s Microeconomics series entitled “MPC and Multiplier” which is about the Marginal Propensity for Consumption (at its most basic level: if you received a windfall of $100 how much would of it would you spend). It’s only a few minutes, and I would suggest watching it before reading the rest of the post:

Ok, with that out of the way, I have a few ideas that I would like to put out there. IANAE (I am not an economist) and I welcome any critique of these ideas, but they seem pretty sensible.

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