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Aggregate Demand, Consumption & Saving · Question 24 of 60

Question 24

EasyOriginal question

If the MPC is 0.8, the MPS is

0.2Correct answerYour answer0.8Correct answerYour answer1.25Correct answerYour answer1.8Correct answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer A

Correct answer: A

Each extra rupee is either consumed or saved, so MPC + MPS = 1.
MPS = 1 − 0.8 = 0.2.

Concept: MPC + MPS = 1
Typical timeTypical: 40 s
Your timeYours: —

The rule this testsAPC, MPC, APS and MPS

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