If consumers save 21 cents out of every dollar received,the:
A) MPS is 0.79.
B) MPC is 0.21.
C) Multiplier is 0.21.
D) MPS is 0.21.

Name: If consumers save 21 cents out of every dollar received,the: A) MPS is 0.79. B) MPC is 0.21. C) Multiplier is 0.21. D) MPS is 0.21.
Brand: Quizplus
Rating: 4.8 (44 reviews)

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 21 cents out of every dollar, the MPS is 0.21.

If Consumers Save 21 Cents Out of Every Dollar Received,the