If the marginal propensity to save is 0.6, then the marginal propensity to consume is
A) 1.0.
B) 0.4.
C) 0.6.
D) not determinable.

Name: If the marginal propensity to save is 0.6, then the marginal propensity to consume is A) 1.0. B) 0.4. C) 0.6. D) not determinable.
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Question

Quizplus · Accepted Answer

The sum of the marginal propensity to save and the marginal propensity to consume must equal 1. Therefore, if the marginal propensity to save is 0.6, then the marginal propensity to consume must be 0.4 (1-0.6=0.4).

If the Marginal Propensity to Save Is 0