The marginal propensity to save is equal to:
A) 1 - MPC.
B) 1 - multiplier.
C) 1 ÷ MPC.
D) (Total savings)÷ (total disposable income).

Name: The marginal propensity to save is equal to: A) 1 - MPC. B) 1 - multiplier. C) 1 ÷ MPC. D) (Total savings)÷ (total disposable income).
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Question

Quizplus · Accepted Answer

The marginal propensity to save (MPS) is equal to 1 minus the marginal propensity to consume (MPC), as the two must sum to 1, representing the division of an additional unit of income between saving and spending.

The Marginal Propensity to Save Is Equal To