Question

If the MPC is 0.6 and the APC is 0.9, the MPS equals 0.2. MPS plus...

If the MPC is 0.6 and the APC is 0.9, the MPS equals 0.2. MPS plus MPC equals 1. So MPS must be equal to 0.2. The MPC and MPS always add to be 1. Separately, neither MPC nor MPS can be less than 0 or greater than 1. 0.4. 1.7. 0.8

0 0
Add a comment Improve this question Transcribed image text
Answer #1

PLease rate the answer
ANswer a)  1

Neither MPC nor MPS can be less than 0 or greater than 1

MPC+ MPS = 1

Marginal propensty to consume can never be greater than 1 as additional consumption cannot be greater than additional income
Similarly, marginal propensity to save can never be greater than 1 as the additional savings cannot be greater than additional income .

When MPC is 0.6 , MPS is 1-0.6 = 0.4
MPS is not 0.2 .

Add a comment
Know the answer?
Add Answer to:
If the MPC is 0.6 and the APC is 0.9, the MPS equals 0.2. MPS plus...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • 1. The Average Propensity to Consume: C/Y C/Yd delC/delYd delC/Y 2.MPS+MPC+APS+APC = 1 2 No way...

    1. The Average Propensity to Consume: C/Y C/Yd delC/delYd delC/Y 2.MPS+MPC+APS+APC = 1 2 No way of knowing 0 3. A budget surplus is when T>G Then budget is balanced G>T T=G 4.Who sets the required reserve ratio? The required portion of assets that must be kept by banks The required portion of money that must be kept by banks The required portion of loans that must be kept by banks The required portion of deposits that must be kept...

  • help TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false....

    help TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. 11) As long as income is above planned aggregate expenditure, unplanned inventory reductions have occurred. 12) Actual investment equals planned investment plus unplanned changes in inventories. 13) Firms react to an unplanned inventory investment by increasing output 14) If the MPC is 0.8, then the multiplier is 0.2 15) If the MPS is 0.25, then the multiplier is 4. 16) When the economy is...

  • To decide on the number of service counters needed for stores to be built in the...

    To decide on the number of service counters needed for stores to be built in the future, a supermarket chain wanted to obtain information on the length of time (in minutes) required to service customers. To find the distribution of customer service times, a sample of 60 customers' service times was recorded and are shown here. 0.5 1.2 5.2 1.2 0.4 3.7 0.3 0.2 3.1 1.6 0.6 2.3 1.8 0.4 2.8 1.2 1.0 1.3 1.0 0.8 1.9 1.0 0.5 1.0...

  • 18. In a perfectly competitive market, individual firms set: A) prices and quantities B) neither prices...

    18. In a perfectly competitive market, individual firms set: A) prices and quantities B) neither prices nor quantities. C) quantiies but not prices D) prices but not quantities 19. The perfectly competitive firm faces a perfectly elastic demand curve because A) t has the ability to set the price and force everyone to buy at that price. it has no ability to control price. B) C) t doesn't; it faces a perfectly inelastic demand curve D) it doesn't; everyone knows...

  • 1. Suppose that we catch either salmon (state 1) or sea bass (state 2) according to a Markov Model where the transition matrix is given by 0.8 0.2 A= 0.4 0.6 Suppose that we compare the length, x, of...

    1. Suppose that we catch either salmon (state 1) or sea bass (state 2) according to a Markov Model where the transition matrix is given by 0.8 0.2 A= 0.4 0.6 Suppose that we compare the length, x, of each fish that we catch to 15cm, and that for all times P(x> 15| salmon) 0.2 P(x > 15 sea bass) 0.7 (a) Suppose we caught a salmon at time 1. What is the probability that we catch a sea bass...

  • Keq determination 1 0.9 2900X 0.00 R -0.9985 08 Absorbance 0.7 0.6 0.5 0.4 0.3 0.2...

    Keq determination 1 0.9 2900X 0.00 R -0.9985 08 Absorbance 0.7 0.6 0.5 0.4 0.3 0.2 0.1 0 0.00005 0.0003 0 0.00035 0.0001 0.00015 0.0002 0.00025 Concentration of Fe(SCN)2-(M) To determine the Key for the above reaction, 10.00 mL of 0.00200 M Fe(NO3); solution is mixed with 5.00 ml of 0.0020 M KSCN and diluted with 5.0 ml of 0.10 M HNO3. The absorbance of this red solution is found to be 0.322. Answer the following questions in sequence to...

  • 0.5/10 points Previous Answers MendStat14 1.E.030 My Notes Ask Your Teacher To decide on the number...

    0.5/10 points Previous Answers MendStat14 1.E.030 My Notes Ask Your Teacher To decide on the number of service centers needed for store to be built in the future, a supermarket chain wanted to obtain information on the length of time in minutes) required to service customers. To find the distribution of customer service me, a ngle of customer's 3.0 0.6 1.7 0.7 10 1.1 1.3 4.6 0.4 10 15 0.6 1.6 2.8 14 06 1.8 1.1 0.9 3.1 0.3 0.2...

  • at you 7.54 Consider a binary mixture of a and b at T 300K and P = 40 kPa. A graph of the fugacity of species a as a fu...

    at you 7.54 Consider a binary mixture of a and b at T 300K and P = 40 kPa. A graph of the fugacity of species a as a function of mole fraction is shown below. Use Henry's law as the reference state for species a and the Lewis/Randall rule for species b. Show all your work 40 38 36 T-300 K P: 40 kPa 34 32 30 28 26 24 22 20 18 16 14 12 10 4 2...

  • 10. Open-market purchases of government bonds by the Fed will have the tendency to: A) Increase...

    10. Open-market purchases of government bonds by the Fed will have the tendency to: A) Increase interest rates, the money supply, and national income. B) Increase interest rates and the money supply, but decrease national income. C) Increase interest rates, but decrease the money supply and national income. D) Decrease interest rates, but increase the money supply and national income. E) Decrease interest rates, the money supply, and national income. 11. Aggregate demand would tend to be shifted up by...

  • I'm trying to solve this differential equations by using matlab and I've got a plot from the code attached. But...

    I'm trying to solve this differential equations by using matlab and I've got a plot from the code attached. But I wanna get a plot of completely sinusoidal form. If I can magnify the plot and expand x-axis, maybe we can get the sinusoidal form. So help me with this problem by using matlab. Example is attached in below. One is the plot from this code and another is example. function second_order_ode2 t=[0:0.001:1]; initial_x=0; initial_dxdt=0; [t,x]=ode45(@rhs,t,[initial_x initial_dxdt]); plot(t,x(:,1)) xlabel('t') ylabel('x')...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT