In an economy with no taxes or imports,if the marginal propensity to consume increases,the marginal propensity to save will decrease.

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Quizplus · Accepted Answer

In an economy with no taxes or imports, the sum of the marginal propensity to consume (MPC) and the marginal propensity to save (MPS) is always equal to 1. Therefore, if the MPC increases, the MPS must decrease to maintain this balance.

In an Economy with No Taxes or Imports,if the Marginal