If the MPC is 0.7, what is the marginal propensity to save?
A))5
B))1
C))3
D)None of the above

Question

Quizplus · Accepted Answer

If the MPC is 0.7, the marginal propensity to save is 0.3.
Key Takeaway: MPC stands for "marginal propensity to consume." Basically, MPC looks at the proportion of each dollar earned that will go toward individual consumption spending. MPS is, therefore, the marginal propensity to save. Remember that MPC + MPS for any individual consumer always equals one.

If the MPC Is 0