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Determination of Income and Employment — Economics STD 12 Humanities & Commerce — Question

Rajasthan BoardEnglish MediumSTD 12 Humanities & CommerceEconomicsDetermination of Income and Employment1 Mark
Question
What is the value of MPC when MPS is zero?
  1. 1
  2. 0
  3. $\infty$
  4. 0.5
✓

Answer

  1. 1

Explanation:

Since, MPC + MPS = 1

$\therefore$ If MPS is zero, then MPC + 0 = 1

$\therefore$ MPC = 1

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