Exhibit 9-9
-The larger the marginal propensity to save,other things constant,
A)the larger the marginal propensity to consume
B)the larger the multiplier
C)the steeper the consumption function
D)the steeper the saving function
E)the flatter the saving function

Question

Exhibit 9-9 
-The larger the marginal propensity to save,other things constant,
A)the larger the marginal propensity to consume 
B)the larger the multiplier 
C)the steeper the consumption function 
D)the steeper the saving function 
E)the flatter the saving function

Quizplus · Accepted Answer

The marginal propensity to save (MPS) is the slope of the saving function, so a larger MPS means a steeper saving function.

Exhibit 9-9 -The Larger the Marginal Propensity to Save,other Things Constant