The Sum of the Marginal Propensity to Consume (MPC)and the Marginal

question 111

Multiple Choice

The sum of the marginal propensity to consume (MPC) and the marginal propensity to save (MPS) equals:

• A)0.5.
• B)the multiplier.
• C)the slope of the consumption function.
• D)1.0.
• E)the slope of the saving function.

---

Definitions:

Nominal Wages

The wages that are paid to employees without adjustment for inflation, representing the dollar amount of the pay before considering purchasing power.

Real Incomes

The purchasing power of an individual's or group's income, considering the effects of inflation on buying power.

Life Shortening Diseases

Conditions or illnesses that have the potential to reduce the lifespan of an individual.

Average Earnings

The mean income calculated by dividing the total income of a group by the number of individuals or instances in that group.