Multiple Choice
Which of the following is true?
I. 1 − MPS = MPC where MPS = marginal propensity to save and MPC = marginal propensity to consume.
II. personal saving + consumption = gross income
III. ∆disposable income = ∆saving + ∆consumption where ∆ = change in
A) I, II, and III
B) I and II only
C) I and III only
D) II and III only
Correct Answer:
Verified
Correct Answer:
Verified
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