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2 July, 12:16

If the MPC is 0.8, the Marginal Propensity to Save is?

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  1. 2 July, 12:41
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    0.2

    Explanation:

    Data provided in the question

    Marginal propensity to consume (MPC) = 0.80

    Based on the given information, the marginal propensity to save is

    As we know that

    Marginal propensity to consume (MPC) + Marginal propensity to save (MPS) = 1

    where,

    Marginal propensity to consume (MPC) is 0.8

    So, the marginal propensity to save is

    = 1 - 0.8

    = 0.2
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