If the MPC is 0.75, then the MPS is
A) 0.25.
B) 1.39.
C) 1.25.
D) cannot be determined without more information.

Name: If the MPC is 0.75, then the MPS is A) 0.25. B) 1.39. C) 1.25. D) cannot be determined without more information.
Brand: Quizplus
Rating: 4.9 (49 reviews)

Question

Quizplus · Accepted Answer

MPC (Marginal Propensity to Consume) + MPS (Marginal Propensity to Save) = 1

Given MPC = 0.75

We know that MPC + MPS = 1

0.75 + MPS = 1

MPS = 1 - 0.75

MPS = 0.25

Therefore, the answer is A) 0.25.

If the MPC Is 0