if-you-receive-a-pay-raise-of-2000-and-your-marginal-propensity-to-save-mps-is-0

Question

If you receive a pay raise of $2,000 and your marginal propensity to save (MPS) is 0.4, how much of the raise will you save?

Accepted Answer

$800

Answer

$2,000

Answer

$1,200

Answer

$0

If you receive a pay raise of \$2,000 and your marginal propensity to save (MPS) is 0.4, how much of the raise will you save?