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:

Developmental Period

A phase in an individual's life characterized by specific types of growth or change, such as infancy, adolescence, or adulthood.

Careers

The progression and actions related to an individual's occupation or profession over their lifetime.

Inductive Arguments

Arguments that reason from specific instances to general principles, aiming to support the truth of their conclusions in a probabilistic manner.

Validity

The quality of being logically or factually sound; in logic, an argument is valid if its conclusion follows inevitably from its premises.