Sum of MPC and MPS is equal to :

1

The correct answer is option (1) : 1

The sum of the Marginal Propensity to Consume (MPC) and the Marginal Propensity to save (MPS) is equal to 1.

MPC (Marginal Propensity to Consume) and MPS (Marginal Propensity to Save) are two key concepts in economics that together describe how individuals allocate incremental income between consumption and saving.

The sum of MPC and MPS is always equal to 1. This relationship is derived from the fact that any additional income (or marginal income) is either consumed (MPC) or saved (MPS):

MPC+MPS=1