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sergey [27]
3 years ago
6

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

Business
1 answer:
TEA [102]3 years ago
5 0

Answer:

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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