-At every level of GDP the MPC and MPS:
A) are 1/2 and 1/2 respectively.
B) are equal to the 3/4 and 1/4 respectively.
C) are 4/5 and 1/5 respectively.
D) cannot be determined from the information given.

Question

-At every level of GDP the MPC and MPS:
A) are 1/2 and 1/2 respectively. 
B) are equal to the 3/4 and 1/4 respectively. 
C) are 4/5 and 1/5 respectively. 
D) cannot be determined from the information given.

Quizplus · Accepted Answer

The MPC and MPS are always equal to 1/2 and 1/2 respectively, regardless of the level of GDP.

-At Every Level of GDP the MPC and MPS