According to the simple Keynesian model, which statement is NOT correct?
A) MPC + MPS = 1
B) APC + MPS = 1
C) APC + APS = 1
D) Y = C + S

Name: According to the simple Keynesian model, which statement is NOT correct? A) MPC + MPS = 1 B) APC + MPS = 1 C) APC + APS = 1 D) Y = C + S
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Quizplus · Accepted Answer

According to the simple Keynesian model, the correct equation is APC + APS = 1, not APC + MPS = 1. APC stands for average propensity to consume and APS stands for average propensity to save.

According to the Simple Keynesian Model, Which Statement Is NOT