Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: Determination of Income and Employment

Question:
Reena and Devi are two friends earning a certain amount of income which they partially consume and save the rest. Assuming their disposable income to be 100% , Reena saves 34% of her income whereas Devi consumes 78% of her income. Which of the following are true-
Options:
MPC of Reena is 0.66
MPS of Devi is 0.22
Both 1 and 2
None of these
Correct Answer:
Both 1 and 2
Explanation:
MPS + MPC = 1