Which of the following is not correct? OA MPs=1-() OB. AC OC. 0 < MPS <...

Question

Question

Answer 1

Answer #1

Answer
Option A
MPS=1-(change in C /change in YD)
where
MPC=(change in C /change in YD)
so
MPS+MPC=1
and
0<MPC<1 and also 0<MPS<1

the first option has the equation with the second term as the average propensity to consume and that is not MPC.

Answer 2

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