Answer to Question #87984 in Macroeconomics for Martha

Question #87984

If marginal propensity to save is 3/4, then the marginal propensity to consume is

Expert's answer

MPC or Marginal propensity to consume is also given as, (1-MPS). Where, MPS is marginal propensity to save.

So, if MPS =3/4

Then MPC = (1-3/4)

= 1/4 or 0.25

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