Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: Determination of Income and Employment

Question:

One among the following should be added to MPC to find the result 1 (one).

Choose the correct answer :

Options:

APS

APC

MPS

MPC

Correct Answer:

MPS

Explanation:

The correct answer is option (3) : MPS

MPC + MPS = 1

The sum of MPC and MPS equals 1, which represents the entirely of income, with some being consumed (MPC) and the rest being saved (MPS).