At which point is MPC = MPS? |
0 1 2 0.5 |
0.5 |
The correct answer is option 4: 0.5 The Marginal Propensity to Consume (MPC) and the Marginal Propensity to Save (MPS) are related and complementary. Their sum is always equal to . MPC+MPS=1 Thus, both will be equal only when the value will be 0.5. |