Economics · Macroeconomics
Which of the following equations correctly represents the relationship between the Marginal Propensity to Consume (MPC) and the Marginal Propensity to Save (MPS)?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1MPC + MPS = 1✓
- 2MPC + MPS < 1
- 3MPC + MPS > 1
- 4MPC - MPS = 1
Correct answer
MPC + MPS = 1
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