Based on our understanding of consumption and saving, we know that the marginal propensity to consume and the marginal propensity to save must
A) be equal to each other.
B) sum to exactly one.
C) sum to less than one.
D) sum to more than one.
E) be equal to the multiplier.
B
Economics
You might also like to view...
Explain two different ways to determine the profit-maximizing level of output for a firm in a perfectly competitive market
What will be an ideal response?
Economics
If some monopolistically competitive firms exit their market after suffering short-run losses, the demand curves of remaining firms will shift to the right
Indicate whether the statement is true or false
Economics