Refer to the information provided in Table 8.4 below to answer the questions that follow.
Table 8.4
-Refer to Table 8.4. Society's MPS is
A) 0.1.
B) 0.25.
C) 0.8.
D) 0.9.

Question

Refer to the information provided in Table 8.4 below to answer the questions that follow.
Table 8.4 
-Refer to Table 8.4. Society's MPS is
A) 0.1. 
B) 0.25. 
C) 0.8. 
D) 0.9.

Quizplus · Accepted Answer

The Marginal Propensity to Save (MPS) is calculated as 1 minus the Marginal Propensity to Consume (MPC). Without the table, we assume typical values where MPC is often around 0.75, making MPS 0.25.

Refer to the Information Provided in Table 8