The marginal propensity to consume (MPC) is related to the marginal propensity to save (MPS) by the formula MPC = 1 - MPS.
Answer the following statement true (T) or false (F)
True
Out of any additional disposable income, the MPC and MPS measure the fractions that are spent and saved, respectively.
Economics
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If nominal GDP is $230 for a period and real GDP is $200 for the same period, what is the GDP price index for this period?
What will be an ideal response?
Economics
A theory of saving is necessarily a theory of consumption, because ________
A) by definition, any unit of disposable income that is not a consumption expenditure is a unit of saving B) consumption decisions are made after saving has occurred C) private saving is equal to private investment D) the goal of consumption choices is to achieve the desired level of savings
Economics