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

Question

Quizplus · Accepted Answer

The smaller the marginal propensity to save, the more likely people are to spend a larger proportion of their income, therefore the larger the marginal propensity to consume.

The Smaller the Marginal Propensity to Save,other Things Constant,_____