MTR = 0.2;MPS = 0.2
-Refer to the above information to answer this question.What is the value of the MLR?
A)0.04
B)0.4
C)0.5
D)0.8

Name: MTR = 0.2;MPS = 0.2 -Refer to the above information to answer this question.What is the value of the MLR? A)0.04 B)0.4 C)0.5 D)0.8
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Quizplus · Accepted Answer

The Marginal Leakage Rate (MLR) is the sum of the Marginal Tax Rate (MTR) and the Marginal Propensity to Save (MPS). Here, MLR = MTR + MPS = 0.2 + 0.2 = 0.4.