For a household, the marginal propensity to save plus the marginal propensity to consume

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The marginal propensity to save (MPS) is the fraction of additional income that a household saves rather than spends, while the marginal propensity to consume (MPC) is the fraction of additional income that a household spends rather than saves. Therefore, MPS + MPC = 1, since all additional income must either be consumed or saved.

For a Household, the Marginal Propensity to Save Plus the Marginal