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The Marginal Propensity to Save (MPS) plus the Marginal Propensity to Consume (MPC) is always equal to:

AZero
BOne
CThe Investment Multiplier
DTotal National Income

Explanation

Since any additional unit of disposable income is either spent or saved, MPC + MPS = 1.

Submitted by: mcqstutor Team More Economics MCQs →

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