Refer to Table 9.1 for the following questions.
Table 9.1

-Refer to Table 9.1. Given the consumption schedule in the table, the marginal propensity to save is:
A)0.3.
B)0.4.
C)0.5.
D)0.6.

Question

Refer to Table 9.1 for the following questions.
Table 9.1
 
-Refer to Table 9.1. Given the consumption schedule in the table, the marginal propensity to save is:
A)0.3. 
B)0.4. 
C)0.5. 
D)0.6.

Quizplus · Accepted Answer

The marginal propensity to save (MPS) is calculated as 1 minus the marginal propensity to consume (MPC). If the MPC is 0.5, then the MPS is 0.5.

Refer to Table 9.1 for the Following Questions