If consumers save 15 cents out of every dollar received,the:
A) Multiplier is 15.
B) MPS is 0.85.
C) MPS is 0.15.
D) Multiplier is 0.15.

Name: If consumers save 15 cents out of every dollar received,the: A) Multiplier is 15. B) MPS is 0.85. C) MPS is 0.15. D) Multiplier is 0.15.
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Question

Quizplus · Accepted Answer

The Marginal Propensity to Save (MPS) is the fraction of an additional dollar of income that is saved. If consumers save 15 cents out of every dollar, the MPS is 0.15.

If Consumers Save 15 Cents Out of Every Dollar Received,the