If the marginal propensity to save is 0.25 in an economy with no taxes and no imports,the marginal propensity to consume is 1.25.

Name: If the marginal propensity to save is 0.25 in an economy with no taxes and no imports,the marginal propensity to consume is 1.25.
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Quizplus · Accepted Answer

The marginal propensity to consume (MPC) is calculated as 1 minus the marginal propensity to save (MPS). If MPS is 0.25, then MPC is 1 - 0.25 = 0.75, not 1.25.

If the Marginal Propensity to Save Is 0