Question

If MPC is .6 then MPS will be *
a. 40
b. 004
c. .04
d. 0.4​

Answer 1

Answer:

Saving function is S= s + M(1-b) where s=autonomous savings, (1-b)= marginal propensity to save, and M= income. Comparing it to S=−40+0.4(M), MPS= 0.4.

We know that,

MPS + MPC = 1

=> MPC = 1 - MPS

=> MPC = 1 - 0.4

=> MPC = 0.6

Therefore, MPC is 0.6.

Answer 2

0.6 is the correct answer...

I hope it helps u...

Brainliest pls...