Question : The value of MPC varies between __ and ___.
Option 1: 1 and 2
Option 2: 0 and 1
Option 3: -1 and 1
Option 4: None of the above.
Answer (1)
23rd Jan, 2024
Correct Answer: 0 and 1
Solution :
The value of MPC varies between 0 and 1. If whole of additional income is consumed MPS=0.
MPC+MPS=1.
Hence, Option B is correct.
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