If the slope of the saving function is 0.27, then the marginal propensity to
A) import is less than 0.27.
B) save is 0.73.
C) consume is 0.73.
D) consume is 0.27.

Name: If the slope of the saving function is 0.27, then the marginal propensity to A) import is less than 0.27. B) save is 0.73. C) consume is 0.73. D) consume is 0.27.
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Question

Quizplus · Accepted Answer

The marginal propensity to consume (MPC) is the complement of the marginal propensity to save (MPS). If the MPS is 0.27, then MPC is 1 - 0.27 = 0.73.

If the Slope of the Saving Function Is 0