-The above figure shows the saving schedules for economies 1,2,3,and 4.Which economy has the highest marginal propensity to consume?
A) 1
B) 2
C) 3
D) 4

Question

-The above figure shows the saving schedules for economies 1,2,3,and 4.Which economy has the highest marginal propensity to consume?
A) 1 
B) 2 
C) 3 
D) 4

Quizplus · Accepted Answer

The economy with the highest marginal propensity to consume will have the lowest marginal propensity to save, as they are complementary. Economy 4 has the flattest saving schedule, indicating the lowest marginal propensity to save and thus the highest marginal propensity to consume.

-The Above Figure Shows the Saving Schedules for Economies 1,2,3,and