Assume that the marginal propensity to consume in the US is currently 99%. What is the marginal propensity to save?
A) 10%
B) 1%
C) 9%
D) .01%

Name: Assume that the marginal propensity to consume in the US is currently 99%. What is the marginal propensity to save? A) 10% B) 1% C) 9% D) .01%
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Question

Quizplus · Accepted Answer

The sum of the marginal propensity to consume and the marginal propensity to save always equals 1. Therefore, if the marginal propensity to consume is 99%, the marginal propensity to save must be 1%.

Assume That the Marginal Propensity to Consume in the US