If the MPS is 0.3,then what is the value of the MPC?
A)1 minus 0.3
B)0.3 minus 1
C)The reciprocal of the MPS.
D)0.3 x 0.7
E)0.3

Name: If the MPS is 0.3,then what is the value of the MPC? A)1 minus 0.3 B)0.3 minus 1 C)The reciprocal of the MPS. D)0.3 x 0.7 E)0.3
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Question

Quizplus · Accepted Answer

MPC (Marginal Propensity to Consume) + MPS (Marginal Propensity to Save) = 1. Therefore, if MPS is 0.3, then MPC = 1 - 0.3 = 0.7.

If the MPS Is 0