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

Name: Which of the following is FALSE? A) 1 - MPC = MPS B) 1 + MPS = MPC C) 1 - APS = APC D) MPC + MPS = 1
Brand: Quizplus
Rating: 4.9 (28 reviews)

Question

Quizplus · Accepted Answer

B) is false because it incorrectly states that adding the Marginal Propensity to Save (MPS) to 1 equals the Marginal Propensity to Consume (MPC). The correct relationship is that MPC + MPS = 1, indicating that any additional income will be either saved or consumed.

Which of the Following Is FALSE