Which of the Following Statements Is False

Multiple Choice

Which of the following statements is false?

A) MPC plus MPS equals 1.
B) MPC is additional saving divided by additional disposable income.
C) The MPS is the ratio of the change in saving to the change in disposable income.
D) If MPC equals 0.80,autonomous consumption equals $400,and disposable income equals $600,then consumption equals $880.
E) none of the above