Which of the following is FALSE?
A)1 - MPC = MPS
B)1 + MPC = MPS
C)1 - APS = APC
D)APC + APS = 1

Name: Which of the following is FALSE? A)1 - MPC = MPS B)1 + MPC = MPS C)1 - APS = APC D)APC + APS = 1
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Question

Quizplus · Accepted Answer

The correct formula is 1 - MPC = MPS, not 1 + MPC = MPS. This is a basic macroeconomic formula that represents the relationship between marginal propensity to consume (MPC) and marginal propensity to save (MPS). A is true, C is true, and D is true.

Which of the Following Is FALSE