Question

marginal propensityto conseum+marginal propensityto save =optins are-0,1,2,5​

Answer 1

Answer:

Mathematically, in a closed economy, MPS + MPC = 1, since an increase in one unit of income will be either consumed or saved. In the above example, If MPS = 0.4, then MPC = 1 - 0.4 = 0.6.

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