If the marginal propensity to consume is 6.5 what is the marginal propensity to save?

Answer 1

Hello Joshua P.

The MPC and MPS must equal 1.

If your MPC is .8 your MPS will equal .2. - Multiplier = 5

If your MPC is .75 your MPS will equal .25 - Multiplier = 4

Cheers,

C