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 flatter the consumption function
D)the flatter the saving function
E)the steeper the consumption function

Question

Quizplus · Accepted Answer

The marginal propensity to save (MPS) is the portion of additional income that is saved. A larger MPS means a smaller marginal propensity to consume (MPC), leading to a flatter consumption function.

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