If consumption is defined as C = 2,000 + 0.8Y, then the marginal propensity to save is 0.8.

Name: If consumption is defined as C = 2,000 + 0.8Y, then the marginal propensity to save is 0.8.
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Quizplus · Accepted Answer

The marginal propensity to save (MPS) is 1 minus the marginal propensity to consume (MPC). Given that the MPC is 0.8 (from the 0.8Y in the consumption function), the MPS would be 1 - 0.8 = 0.2.

If Consumption Is Defined as C = 2,000 + 0