If the marginal propensity to save (MPS)= 0.1, then
A)the MPC = 0.9.
B)the APS = 0.1.
C)the APC = 0.9.
D)consumption equals $1,800 when income equals $2,000.

Name: If the marginal propensity to save (MPS)= 0.1, then A)the MPC = 0.9. B)the APS = 0.1. C)the APC = 0.9. D)consumption equals $1,800 when income equals $2,000.
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Question

Quizplus · Accepted Answer

MPS + MPC = 1
0.1 + MPC = 1
MPC = 0.9, which is the answer for choice A.

If the Marginal Propensity to Save (MPS)= 0