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:

Adjacent Land

Land or property that is next to or shares a common boundary with another property.

Tying Strategy

A sales tactic where a product or service is sold only on the condition that the buyer also purchases another, typically related, product or service.

Profit-Maximizing Price

The price at which a company can achieve the highest possible profit on its product or service, which typically involves balancing price levels to maximize total revenue while minimizing costs and losses.

Cable Television

A system of delivering television programming to paying subscribers via radio frequency signals transmitted through coaxial cables.