Question

If the MPC is 0.8, the Marginal Propensity to Save is?

Answer 1

0.2

Step-by-step explanation:

Data provided in the question

Marginal propensity to consume (MPC) = 0.80

Based on the given information, the marginal propensity to save is

As we know that

Marginal propensity to consume (MPC) + Marginal propensity to save (MPS) = 1

where,

Marginal propensity to consume (MPC) is 0.8

So, the marginal propensity to save is

= 1 - 0.8

= 0.2