-Use the above table. The MPS is
A) 0.91.
B) 0.80.
C) 0.20.
D) 0.09.

Name: -Use the above table. The MPS is A) 0.91. B) 0.80. C) 0.20. D) 0.09.
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Question

-Use the above table. The MPS is
A) 0.91. 
B) 0.80. 
C) 0.20. 
D) 0.09.

Quizplus · Accepted Answer

The Marginal Propensity to Save (MPS) is calculated as the change in saving divided by the change in income. Given that the Marginal Propensity to Consume (MPC) is 1 - MPS and assuming a typical MPC of 0.8 (as a common economic assumption without a specific table provided), MPS would be 1 - 0.8 = 0.2.

-Use the Above Table. the MPS Is