how-do-the-marginal-propensity-to-save-mps-and-marginal-propensity-to-consume-mp

Question

How do the marginal propensity to save (MPS) and marginal propensity to consume (MPC) complement each other?

Accepted Answer

They sum to 1, indicating the total change in disposable income allocation.

Answer

They sum to 0, indicating no change in disposable income allocation.

Answer

They are unrelated, indicating independent changes in disposable income allocation.

Answer

They are equal, indicating identical changes in disposable income allocation.