If the marginal propensity to consume is .9,then the marginal propensity to save must be:
A) 1.
B) .1.
C) 1.1.
D) .9.

Name: If the marginal propensity to consume is .9,then the marginal propensity to save must be: A) 1. B) .1. C) 1.1. D) .9.
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Question

Quizplus · Accepted Answer

The marginal propensity to consume (MPC) + the marginal propensity to save (MPS) must equal 1. Therefore, if the MPC is 0.9, then the MPS must be 0.1 (1 - 0.9 = 0.1).

If the Marginal Propensity to Consume Is