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

question 10

Multiple Choice

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

• A) 1.
• B) 0.
• C) the interest rate.
• D) the marginal propensity to invest (MPI).

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Definitions:

Self-Disclosure

The voluntary act of sharing personal information about yourself with another person.

Feelings of Intimacy

Emotional experiences that foster a sense of closeness, connectedness, or bondedness with another person.

One New Activity

An action or task that a person undertakes for the first time, often aimed at learning or experiencing something different.

Bringing Novelty

The act of introducing something new, fresh, or unusual into a situation or environment.