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    MPC and the MPS

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    Justify why the MPC and the MPS must always add up to one.

    © BrainMass Inc. brainmass.com October 9, 2019, 8:17 pm ad1c9bdddf

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    MPC (Marginal Propensity to Consume) means extra consumption from an extra dollar of income.
    And, MPS (Marginal Propensity to Save) means extra saving from an extra dollar of income.
    That means, if you earn an extra dollar, how much would ...

    Solution Summary

    MPC and the MPS are studied.