If the slope of the saving function is 0.27, then the marginal propensity to _________.
A) save is 0.73
B) consume is 0.27
C) consume is 0.73
D) import is less than 0.27

Name: If the slope of the saving function is 0.27, then the marginal propensity to _________. A) save is 0.73 B) consume is 0.27 C) consume is 0.73 D) import is less than 0.27
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Question

Quizplus · Accepted Answer

The marginal propensity to consume (MPC) is the complement of the marginal propensity to save (MPS), which is 0.27. Therefore, MPC = 1 - 0.27 = 0.73.

If the Slope of the Saving Function Is 0