Which of the following is correct?
A)1 + MPS = MPC
B)1 - MPC = MPS
C)1 - MPS = MPC + 1
D)1 - MPS = MPC - 1

Name: Which of the following is correct? A)1 + MPS = MPC B)1 - MPC = MPS C)1 - MPS = MPC + 1 D)1 - MPS = MPC - 1
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The equation that relates MPC (Marginal Propensity to Consume) and MPS (Marginal Propensity to Save) is 1 = MPC + MPS. In order to solve for MPS, we can rearrange the equation as MPS = 1 - MPC. Therefore, option B (1 - MPC = MPS) is the correct choice.

Which of the Following Is Correct