Economy, asked by Sarmin0922, 3 months ago

If the value of the marginal propensity to consume (MPC) is 50% , then what is the value of the marginal propensity to save ( MPS) ?

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Answers

Answered by rafikhannsk
0

Answer:

The marginal propensity to consume (MPC) measures how consumer spending changes with a change in income. Using the figures above, the MPC is ΔC / ΔY = 300/600 = 0.5. This means that every $1 of new income will generate $2 of extra income.

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