If the Marginal Propensity to Save (MPS)= 0

question 432

Multiple Choice

If the marginal propensity to save (MPS) = 0.1, then

• A)the MPC = 0.9.
• B)the APS = 0.1.
• C)the APC = 0.9.
• D)consumption equals $1,800 when income equals $2,000.

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Definitions:

Empirical Approach

A method of inquiry that relies on direct observation and experiment to gather data and evidence.

Independent Variable

An element in research that is manipulated or changed to observe its effect on a dependent variable, thereby testing hypotheses in experimental studies.

Anxiety

A state of agitation and fretfulness, commonly experienced over an approaching happening or an affair with an indeterminate end.

Affiliation

The relationship or connection between individuals or organizations, typically characterized by a shared purpose or common goals.