Which one of the following is not correct:
A)MPC declines as income increases
B)MPC is positive but less than one
C)MPS is always positive
D)MPS declines as income increases

Name: Which one of the following is not correct: A)MPC declines as income increases B)MPC is positive but less than one C)MPS is always positive D)MPS declines as income increases
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Question

Quizplus · Accepted Answer

The Marginal Propensity to Save (MPS) can be zero or even negative if individuals dissave, meaning they spend more than their income.

Which One of the Following Is Not Correct