Question

MPC+MPS=________________​

Answer 1

Answer:

The value of MPC is equal to unity (i.e., 1) when MPS is zero since whole of disposable income is spent on consumption. ... MPC or MPS cannot be negative because MPS is ratio between additional saving (∆S) and additional income (∆Y) and similarly MPC is ratio between additional consumption (∆C) and additional Income (∆Y).