If consumers save 8 cents out of every dollar received,the:
A) MPC is 0.08.
B) MPS is 0.08.
C) Multiplier is 0.08.
D) Multiplier is 0.92

Name: If consumers save 8 cents out of every dollar received,the: A) MPC is 0.08. B) MPS is 0.08. C) Multiplier is 0.08. D) Multiplier is 0.92
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Question

Quizplus · Accepted Answer

The Marginal Propensity to Save (MPS) is the fraction of an additional dollar of household income that is saved. If consumers save 8 cents out of every dollar, the MPS is 0.08.

If Consumers Save 8 Cents Out of Every Dollar Received,the