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If MPC is less than one, it follows that ______ -

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Question

If MPC is less than one, it follows that ______

Options

  • (1 − b) i.e. MPS is zero

  • (1 − b) i.e. MPS is positive

  • (1 − b) i.e. MPS is negative

  • (1 − b) i.e. MPS is infinity

MCQ

Solution

If MPC is less than one, it follows that (1 − b) i.e. MPS is positive

Explanation:

MPC is represented by b. When b is smaller than 1, 1 − b must be positive, or 1 − b > 0.

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