41f MPC was 90% in 2008, how much is MPS (Marginal Propensity to Save)?

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41f MPC was 90% in 2008, how much is MPS (Marginal Propensity to Save)?

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Answer 1

Answer #1

We know that MPC and MPS are tied in an equation MPS + MPC = 1.

Hence if MPC is 90%, then MPS is 1 - MPC or 1 - 90%.

This gives MPS = 1 - 0.90 = 0.10

Thus, MPS is 0.10 or 10%.

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Answer 2

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Calculate the values of marginal propensity to save (MPS) and marginal propensity to consume (MPC) when Y=40.

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41f MPC was 90% in 2008, how much is MPS (Marginal Propensity to Save)?

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