If the marginal propensity to consume is 0.9, then the marginal propensity to save must be
A) 1.0
B) 0.1.
C) 1.1.
D) 0.9.

Name: If the marginal propensity to consume is 0.9, then the marginal propensity to save must be A) 1.0 B) 0.1. C) 1.1. D) 0.9.
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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, the MPS must be 0.1.

If the Marginal Propensity to Consume Is 0