When disposable income equals consumption expenditure, then

Name: When disposable income equals consumption expenditure, then
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Quizplus · Accepted Answer

When disposable income equals consumption expenditure, there is no money left over to save. Therefore, saving is zero. The MPS (marginal propensity to save) can't be calculated as it requires a change in income or expenditure. The MPC (marginal propensity to consume) can't be zero unless the disposable income is zero as well, which is not specified in the question.

When Disposable Income Equals Consumption Expenditure, Then