If the MPC is 0.8 and the APC is 0.9,the MPS equals
A)0.1.
B)0.2.
C)0.8.
D)1.7.

Name: If the MPC is 0.8 and the APC is 0.9,the MPS equals A)0.1. B)0.2. C)0.8. D)1.7.
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Question

Quizplus · Accepted Answer

MPS (Marginal Propensity to Save) is calculated as 1 - MPC (Marginal Propensity to Consume). Given MPC is 0.8, MPS = 1 - 0.8 = 0.2. APC (Average Propensity to Consume) is not directly relevant for calculating MPS.

If the MPC Is 0