Question

Marginal propensity to consume+ Marginal propensity to save =
a) 0
b) 1
c) 2
d) 5​

Answer 1

Answer:

The marginal propensity to save (MPS) is the portion of each extra dollar of a household's income that's saved. MPC is the portion of each extra dollar of a household's income that is consumed or spent. Consumer behavior concerning saving or spending has a very significant impact on the economy as a whole.