Refer to the information provided in Figure 9.1 below to answer the questions that follow. Figure 9.1
-Refer to Figure 9.1. In this economy, 0.5 represents the

Question

Refer to the information provided in Figure 9.1 below to answer the questions that follow.  Figure 9.1
-Refer to Figure 9.1. In this economy, 0.5 represents the

Quizplus · Accepted Answer

0.5 represents both the Marginal Propensity to Consume (MPC) and the Marginal Propensity to Save (MPS) because in a simple economy, MPC + MPS = 1. If MPC is 0.5, then MPS must also be 0.5 to sum up to 1.

Refer to the Information Provided in Figure 9