Marginal propensity to save is 0.3. Calculate MPC | MathCelebrity Forum

Marginal propensity to save is 0.3. Calculate MPC

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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
 
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