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If \[MPC=0.8\], what is MPS?

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Question

If \[MPC=0.8\], what is MPS?

Options

  • \[0.2\]

  • \[0\]

  • \[0.8\]

  • \[1.8\]

MCQ
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Solution

MPC and MPS together always equal 1: \[MPC+MPS=1\]. Therefore, when \[MPC=0.8\], \[MPS=1-0.8=0.2\].

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