Marginal propensity to save is 0.3. Calculate MPC.
MPC is Marginal Propensity to Consume. And MPS is Marginan Propensity to Save.
The relational equation between the two is:
MPC + MPS = 1
To get MPC, we have:
MPC = 1 - MPS
The problem gives us MPS = 0.3, so plug it into this modified MPC equation:
MPC = 1 - 0.3
MPC = 0.7
MPC is Marginal Propensity to Consume. And MPS is Marginan Propensity to Save.
The relational equation between the two is:
MPC + MPS = 1
To get MPC, we have:
MPC = 1 - MPS
The problem gives us MPS = 0.3, so plug it into this modified MPC equation:
MPC = 1 - 0.3
MPC = 0.7